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Bitcoin price chart analysis: breakout on the horizon

By Nathan Batchelor

15:09, 8 June 2020

Bitcoin price chart analysis

Bitcoin suffered a setback last week, after the cryptocurrency lost over $800.00 during a five-minute trading period.

Bitcoin price chart analysis shows that bulls need to hold the price above the $10,100 level in order to activate a large bullish reversal pattern.

Bitcoin medium-term price trend

Bitcoin reversed towards the $9,200 support area last week, after bulls failed to breakout above the technically important $10,500 resistance level.

Bitcoin price technical analysis shows that bulls could still attack towards the $11,600 resistance level, and possibly higher over the medium-term.

Bitcoin price technical analysis

If bulls can perform multiple daily price closes above the $10,000 level then another technical attempt towards the $10,500 level appears possible.

Gains towards the $11,600 and $13,200 level seems likely if a breakout above the $10,500 level takes place.

To the downside, the daily time shows that buyers must keep the price above the $9,200 level. Losses below this area could cause a deeper decline towards the $8,800 area.

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Gold

2,691.30 Price
-0.560% 1D Chg, %
Long position overnight fee -0.0178%
Short position overnight fee 0.0095%
Overnight fee time 22:00 (UTC)
Spread 0.30

BTC/USD

76,016.60 Price
+0.010% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

0.56 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

US100

21,063.20 Price
-0.210% 1D Chg, %
Long position overnight fee -0.0248%
Short position overnight fee 0.0026%
Overnight fee time 22:00 (UTC)
Spread 1.8

Bitcoin short-term price trend

Bitcoin price technical analysis continues to highlight that bulls remain in control while the price trades above the $9,300 support level.

The lower time frames show that a bullish inverted head and shoulders pattern has formed, following the recent rally towards the $10,500 level.

Bitcoin price technical analysis

According to the size of the bullish reversal pattern, the BTC/USD pair could rally towards the $11,600 resistance area.

Price stabilization above the $10,100 level is currently required to activate the bullish reversal pattern.

Bitcoin technical summary

Bitcoin price chart technical analysis highlights that the cryptocurrency can rally towards the $11,600 level if price remains above the $9,000 support level.

 

Markets in this article

BTC/USD
Bitcoin / USD
76016.60 USD
7.3 +0.010%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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