General Introduction (Bitcoin to USD analysis):
Many exciting events come to market this week; however, none of them had a significant effect on Bitcoin movements. The first digital currency was influenced mainly by technical factors and speculative feelings.
Bitcoin to Dollar, Dominant Trend: Bullish
Resistance Level: $9500, $10000, $10500
Support Level: $7000, $6500, $5000
Bitcoin bounced to $8,000, forming a double bottom leak, a bullish price structure, on the four-hour chart. The price break opened the doors at $8,400. In the upper route, BTC could face resistance at $8,350. A recovery of $8,350, if any, could be short-lived if the volume of operations remains low. A break below $7,432 (June 4 low) would reduce the case to a 21-day moving average drop to $7,790. The main cryptocurrency by market value is currently quoted at $8,012, after reaching a maximum of $8,124 today. As a result, the rebound in the recovery could continue, with prices reaching $8,500 over the weekend. Last week, Bitcoin posted good offers in both directions before ending with a flat note, a sign of indecision among buyers. A bearish reversal would be confirmed in the short term if prices closed below last week’s low of $8,000 on Sunday.
The previous 4-hour Bitcoin candle closed just above the resistance of $7,925, confirming a double-bottom leak. The model essentially represents a downtrend change. It should be noted that a double bottom leak is usually followed by an upward movement around the length of the space between the bottom and the neck, from $7,450 to $7,924 in this case which gives a potential upside of around $470 Thus, with an evasion already confirmed, BTC could reach $8,500 over the weekend. On the positive side, BTC could face resistance of $9,500, $10,000 and $10,500, the upper edge of the descending channel that represents bearish highs and lows. However, the recovery can be short-lived if the volumes of operations remain anemic. Considering an increasing relative strength index in the charts, the bullish scenario seems quite realistic, as long as the price rises above $8,000 in the near future. Otherwise, bearish sentiments will begin to rise and bring more sellers to the market.