Bitcoin had successfully broken two resistance levels that might become starting points for a reversal rally as both levels were keeping Bitcoin under the $21,000 price range, and there were only a few scenarios we might see in upcoming weeks.
Edge-to-edge movement
It broke through $21,000 and gained a foothold above the 21-day exponential moving average, which acts as the first resistance for any asset that moves in a downtrend or as a support for assets that are trending up.
The only resistance ahead of it is the 50-day moving average, which acts as Bitcoin's next level to conquer. Usually, when assets enter a range between two moving averages, they tend to move from one level to another if it is not breaking through either one.
Reversing back below the $21,000 threshold
The lack of trading volume and inflows into the market may cause another plunge below $21,000, which might be the end of the mild recovery rally we saw a couple of days ago. The next support level for Bitcoin is staying at around $18,800.
The digital gold successfully bounced off the mentioned price level twice since June 18. With another bounce, we will get confirmation of the consolidation, which is the usual sign of an upcoming long-term reversal.
Bearish scenario
Despite the 15% recovery we saw in the last week, Bitcoin remains in the sharp downtrend for the last 100 days, and we might see the continuation of the trend in the upcoming weeks if Bitcoin fails to maintain above $20,000.
At press time, Bitcoin is trading at $21,310 and losing 1.3% of its value in the last 24 hours.