It was yet again the FOMO among the investors that lost the most in Bitcoin’s recent crash. Since then, BTCUSD recovered slightly. Currently, it is in a consolidation phase.
Over optimistic supporters are still rooting for a quick bull run for BTCUSD. However, the technicals do not point at bull run immediately. The excellent news is BTC is out of the woods, at least for now!
BTCUSD moves above the trendline; finds a crucial support
The four-hour chart shows the breakout above the recent trendline. We predicted this move in our previous article.
It was a genuine breakout with good volume. Therefore, BTCUSD is likely to sustain this region. The good news for BTC enthusiasts is that it is above the critical long term resistance level at $9,621. It will serve as a vital support zone now.
However, Bitcoin is in a historically harsh resistance zone. It will mostly consolidate for the time being. In the absence of market manipulation, the downside for BTCUSD appears to be protected now.
Price action prediction for BTCUSD
The technical indicators show the decreasing strength of the Bears. But that doesn’t mean BTCUSD would dash to $15,000 in the immediate term.
Bitcoin might retest the $10,000 region if the buyers stay put. The open interest on the call-options for June expiry is gradually increasing. It suggests that people are slowly turning Bullish.
The real test for BTCUSD would be the retesting of the $10k level. The psychological barrier might send prices down again. However, if BTC manages to go higher above the $10,500 range, the new support will be the sturdy $10k zone. And that is what the Bitcoin enthusiasts would be aiming!