The fake breakout that happened on June 1 screamed of an imminent downfall. Those who failed to read signs and gave in to FOMO got badly ‘rekt.’
A bullish move will always give a confirmation first. The region above $10,000 was a region of macro resistance fro BTCUSD since 2018.
BTCUSD technical analysis: Fibonacci Golden confluence at $10,000
A long-term timeframe reveals the region between $10,000 to $11,000 has been a critical resistance zone for Bitcoin. As soon as BTCUSD crossed $10,000, people thought it was the big bull run.
However, the daily timeframe for BTC shows that this region has been respected since 2018. If we draw the Fibonacci trend extension from Bitcoin’s peak price at around $19k to its bottom at $3.5k, we get the 61.8% retracement at $10,000. It is the Golden retracement level.
Moreover, in the daily charts, we see that the highs got lower gradually. The trendline joining the tops is the visual evidence. The lows got higher. It gives a rising wedge pattern, which is a bearish pattern.
What to expect next from Bitcoin [BTCUSD]
The RSI or Relative Strength Index is currently moving within a range. It shows consolidation. As per the TA, we feel Bitcoin might dash towards the upside. The resistance would come into force again.
If panic sets in, and buyers start selling off, BTCUSD could reach as low as $6,000.
Bitcoin can be assumed to be bullish if it moves above the $11,000 range. That would be the confirmation for the bullish signal. Therefore, that should be the region to go long in BTC. In case, BTC manages to break past $11,000, it could gain a tremendous momentum and might head towards $14,000.
However, until the confirmation happens, BTCUSD can be assumed to be in a Bear market.