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Bitcoin price chart analysis: breakout looms

By Nathan Batchelor

15:05, 6 July 2020

Bitcoin price chart analysis

Bitcoin is set for a decisive breakout move, as volatility surrounding the first cryptocurrency has fallen to a new yearly low.

Bitcoin price chart analysis shows that traders need to pay close attention to the $8,800 to $9,300 price range.

Bitcoin medium-term price trend

Volatility surrounding Bitcoin has fallen to a fresh 2020 trading low, as the price remains trapped within an extremely narrow range.

Historically, periods of extremely low Bitcoin volatility have been followed by strong directional breakouts.

Bitcoin price technical analysis shows that bearish pressure is building while the price trades below the $9,400 level.

Bitcoin price technical analysis

The daily time shows that the BTC/USD pair has repeatedly struggled to move above its 50-day moving average for nearly two-weeks.

Technical analysis shows that the BTC/USD pair’s 200-day moving average, around the $8,400 level, remains a likely bearish target. 

Key support over the medium-term below the $8,400 level is located at the $8,100 and $7,700 levels.

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US100

21,460.00 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0234%
Short position overnight fee 0.0012%
Overnight fee time 22:00 (UTC)
Spread 1.8

XRP/USD

2.18 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01087

ETH/USD

3,286.86 Price
+0.430% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 1.75

Gold

2,626.03 Price
+0.120% 1D Chg, %
Long position overnight fee -0.0151%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.30

Bitcoin short-term price trend

Bitcoin price technical analysis shows that short-term bulls are in control while the price trades below the $9,300 level.

Lower time frame analysis shows that the $8,800 to $9,300 price range should be watched closely this week.

Bitcoin price technical analysis

The $8,800 level represents the June monthly price low, while the $9,300 level is the current July monthly price high.

A new short-term price trend is likely to begin in the BTC/USD pair once we see this importance price range broken.

Key resistance above the range is found at the $9,400 and $9,800 level, while the $8,700 and $8,400 are important support levels below the price range.

Bitcoin technical summary

Bitcoin technical analysis indicates that the cryptocurrency may finally break free from narrow range bound trading conditions. A break from the $8,800 to $9,300 price range should increase volatility.

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