- Summary:
- Bitcoin price is testing a confluence of resistance on the 4-hour time frame. Could this suggest a potential drop in BTCUSD soon?
Bitcoin price has been consolidating these past few trading days. A closer look at the 4-hour time frame would show that the cryptocurrency is testing a confluence of resistance. Could this mean that BTCUSD would soon trade lower?
When connecting the highs of June 2, June 10, June 22, July 8, and July 13, it can be seen that bitcoin price is trading around the trendline resistance. It is also worth pointing out that the cryptocurrency is testing the 100 SMA and 200 SMA. Reversal candlesticks around $9,276.00 could mean that BTCUSD may soon fall to $8,908.63 where it previously found support. If it does not hold, the next floor for bitcoin price could be at $8,470.25 where it may test the 200 SMA on the daily time frame.
On the other hand, a strong bullish close above the highs of July 13 at $9,351.17 could mean that BTCUSD may have enough buyers to push it higher. Resistance at the falling trendline will have already been invalidated and BTCUSD could soon retest its July 8 highs at $9,450.00. If the ceiling does not hold, the next resistance level for the cryptocurrency could be at $9,798.76 where it peaked on June 22.
Bitcoin Price, 4-Hour Chart
