Bitcoin (BTC) Price Analysis — Will Bullish Trend Continue Through Summer 2020?

Price Predictions
Thu, 06/11/2020 - 09:05
Denys Serhiichuk
Is surpassing the $10,500 mark a realistic scenario for Bitcoin (BTC) this summer?
Cover image via www.tradingview.com

Cryptocurrency market volatility has remained low. We cannot exclude the development of a strong impulse movement in many of the fixed assets, which could disrupt the sideways trend.

Top 10 coins by Coinstats

At the same time, the dominance rate of Bitcoin (BTC) has increased and now amounts to 64.4%.

BTC’s market share

The relevant data for Bitcoin is as follows.

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $180,631,492,177

  • Price: $9,816.36

  • Volume (24h): $26,494,837,371

  • Change (24h): 0.61%

The data is relevant at press time.

BTC/USD: Can bulls expect new local highs in Summer 2020?

For Bitcoin (BTC), $10,565 is still very important, the breakdown of which would indicate a move to $13,000 and higher. However, if bears manage to break through the next support levels, $6,500 will be the target of a downward impulse.

BTC/USD chart by TradingView

BTC/USD quotes have remained below the resistance level. It is crucial for buyers to break $10,565, for the resumption of the bullish trend to begin. Such a scenario would also indicate a breakdown of the upper boundary of the downward channel. If the price falls below $8,545, then it is worth considering this structure as a “Double Top” reversal model with the goal of reaching $6,320. In favor of this scenario is the price rebound from the upper boundary of the downward channel, as well as the fact that the RSI indicator values ​​could not gain a foothold over the resistance line. These factors indicate strong pressure from the bears.

BTC/USD chart by TradingView

On the 4H chart, quotes are located between support and resistance levels. Previously, there was potential for the formation of a “Head and Shoulders” reversal model, which could take the price down, but at the moment the “right shoulder” of the model is noticeably higher, which could stop the formation of this pattern and continue the price growth.

Related
Bitcoin Price Needs to Close Above $10,600 to Confirm Bull Move: Analyst Bob Loukas

As a short-term trading idea, we cannot exclude another test of $10,000 and the beginning of a fall to $9,270. A breakdown of the latter would open up the way to $8,555. If bulls manage to push the price above $10,055, a continuation of the rise to $10,565 and the resumption of the upward trend on the daily chart of the asset is possible.

BTC/USD chart by TradingView

On the weekly chart, Bitcoin (BTC) keeps trading within the narrow ascending channel. The trading volume is dropping slowly. However, the liquidity remains at a relatively high level. As we can see, the current candle is located above the previous one which means that bears were not able to seize the initiative for the long-term prospective. To keep rising, buyers need to hold the price above $10,000. Otherwise, the trend will turn bearish.

Bitcoin is trading at $9,810 at press time.

 

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy