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2 June 2023
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Bitcoin Price Analysis – BTC Trading Sideways Awaiting a Clear Breakout

Key Highlights:

  • For the past month, Bitcoin has been trading sideways.
  • Bulls have been unable to crack the $10,000 resistance level and got rejected several times.
Bitcoin price: $9,429
Key BTC resistance levels: $9,500, 9,557, $10,000
Key BTC support levels: $9,113, $9,000, $8,800

*Price at the time of writing

After yet another attempt by the bulls to climb above $10,000, Bitcoin BTC, 0.01% experienced another massive rejection dropping to $9,100 on Binance. This was the second $10,000 rejection this month alone. This resistance level is crucial and bulls are having a tough time trying to crack it.

Bitcoin Technical Analysis

BTC Daily Chart

What has been going on?

Bitcoin has been bullish since March 12 and managed to recover really well from the crash. Bulls were comfortable inside a daily uptrend but started to face some opposition around $10,000. Bitcoin attempted to break above $10,000 several times in the last few months. 

Every single attempt to crack $10,000 was eventually rejected and followed by a strong bearish move. The last rejection was no different, although bulls managed to push Bitcoin back up to 9,500.

BTC price short-term prediction: Neutral

The crypto market has been extremely unpredictable in the last few weeks. The uncertainty and lack of volume is creating an environment where most breakouts end up being fakeouts. We can often see a bull break followed by no continuation and an immediate drop taking out all the gains. 

Overall, Bitcoin is still bullish although bulls have lost the daily uptrend and the daily EMAs. There are many fundamental metrics in favor of Bitcoin. For instance, the number of BTC addresses with more than 100 BTC has increased by a lot in the last few months.

Unfortunately, fundamental metrics will not necessarily have any impact in the short-term. The 4-hour chart is clearly sideways and has formed an equilibrium pattern. The pattern had a breakout not long ago but got rejected so it basically turned into a fakeout. Bitcoin has continued trading sideways since then. 

The hourly chart is basically in the same state as Bitcoin is waiting for a clear breakout. On Thursday, Bitcoin crashed because the entire stock market crashed. Now, during the weekend, the top-ranked cryptocurrency might just trade sideways waiting for the next move in the stock market.

Where is the resistance towards the upside?

Bitcoin needs to break most EMAs on most time frames first, starting with the hourly chart. Bitcoin is really not facing a lot of resistance to the upside, it’s just the $10,000 level. Nearby, bulls are facing $9,500, the last 4-hour high. After that, they just need to see a clear break above $10K with a lot of trading volume.

What are the technical indicators showing?

A lot of indicators have turned bearish now as Bitcoin is trading below the daily 12-EMA and the 26-EMA. The MACD is also turning bearish and the RSI is at its mid-point. The overall trading volume is also dropping significantly.

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