- Bitcoin remaining above $9,300 support but lacking firepower to push on
- Rejections from $9,900 and $9,800 couple with decreasing volume may be sign of a pullback
- Blast through $10,000 still very much on the cards, especially with 2.5 year downtrend broken on some charts
Bitcoin is acting indecisively around two key levels, opening up the possibility that a pullback may be on the cards before a breakout can occur. Despite finally breaking above its 2.5 year wedge, Bitcoin is showing a little tiredness and may need a small reset before another assault on $10,000. Ethereum meanwhile is looking poised for big things having broken out of its own long term resistance.
Bitcoin Still Looking Good, But It Needs to Act Soon
After several attempts, Bitcoin seemed to have finally closed the day above the 2.5 year downward trendline yesterday:
However, we can’t get too excited yet as other charts offer a different perspective:
This discrepancy is natural and nothing to worry about however – Bitcoin is finally showing enough strength to make tracks towards reversing a trend that started in mid-December 2017. The rest of the week is now key, as ending Sunday above the long term wedge would be even more of a bullish sign, especially if it can break resistance on other charts.
Potential Pullback Before More Upside?
On a lower timeframe however we can see that the picture is a little mixed:
Bitcoin has remained above the key $9,300 support level despite dipping into it a few times, but the fact that we have been beaten back by first the $9,900 and now the $9,800 levels suggests that a pullback could be on the cards if Bitcoin doesn’t burst through in the next few days, which we know it can.
We can see however that volume has been decreasing since Bitcoin’s mega moves at the start of May, which is reflective of its troubles in achieving higher levels. There is no need to be bearish if there is a pullback however – we have well established support levels, and I would still regard any dip as a chance to grab some more Bitcoin before the inevitable big move up.
Ethereum Breakout Could Lead to Further Alt Runs
Ethereum has recently enjoyed a breakout of its own, which could be very good news for alts:
Should it hold, this break gives us confidence that Ethereum has an opportunity to lead Bitcoin in the short term, especially with the narrative of Ethereum 2.0 driving it on.
Following this break I am looking to Ethereum to hit ₿0.0285, which would signal the next uptick in alt performance and a further reduction in Bitcoin dominance. Once this happens we can start to look at alts that have started to reverse their long term downtrends and make some serious gains.