After looking as though the Bitcoin price was going to move higher following a retest of the $94,500 breakout, the price fell through this level late on Sunday and came down to test $92,000 as support. Monday morning has witnessed a bounce from there. The price may now rise back to $94,500 to either confirm the breakdown, or to break back through and prove that this was just a fakeout. Back to $94,500 for breakout or breakdown Source: TradingView The 4-hour chart for $BTC reveals that the price is bouncing back strongly so far on Monday morning. The horizontal resistance level at $93,000 could be about to be broken, and if successful, this would then leave the path open to return to the major $94,500 level . Once there, the important battle begins. If the bulls are unable to push the price back above this key level, and the price is definitively rejected, this could possibly result in a drop down to the bottom of the ascending triangle (in green) , the major ascending trendline, and the $90,000 horizontal support level. Is this potential rejection the more likely option? Probably not. Short time frame momentum indicators are resetting at their respective bottoms , so momentum is more likely to be to the upside than down. That’s not to say that there won’t be a tough battle for the bulls to get back above that key $94,500 level again. 50-day and 100-day SMAs play support and resistance roles Source: TradingView Zooming out into the daily time frame it can be seen how the $BTC price chopped up and down within the ascending triangle before the breakout and then the recent dip back inside. While the 50-day SMA is providing support beneath the price, the 100-day SMA looks to be doing the opposite. That said, if these two moving averages meet, and the blue crosses back on top, that could signal a continuation of this rally. No valid breakout of ascending triangle on weekly time frame Source: TradingView According to the weekly time frame, the $BTC price hasn’t even broken out of the ascending triangle with a candle body yet, as last week’s candle body closed inside. The very strong horizontal resistance of $94,500 remains unbroken on the weekly, and unless this changes, either by the end of this week or the next, what could be a calamitous breakdown might be the outcome. At the bottom of the chart, the Stochastic RSI indicators are in prime position to signal strong upside price momentum, but if this momentum does not materialise, and the indicators roll over and down, the following few weeks could be very painful for investors. Nevertheless, the trend is still up. Until such time as the price falls through the major supporting trendline and confirms below on a higher time frame, the bull market is still on. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
