Bitcoin (BTC) crashes below weekly resistance
In June, the price of bitcoin (BTC) finally managed to return to around $30,000. Now a major test is underway, as as we can see on the weekly chart, the price is still firmly below the $30,000 – $32,000 area (rectangle in yellow), level that acted as support through the previous Bull Run phase and therefore has now become an important resistance zone to break.
Figure 1 – Weekly Bitcoin Price Chart (Weekly)
It will therefore be important to cross this resistance again and thus regain the large blue rectangle, which would mean the return of the price to its old range phase, with the Ichimoku system that would support. In the meantime, it will therefore be interesting to follow the next weekly closes to see if the price manages to break the SSB, which also acts as resistance.
Everything still needs to be done and a rejection below $32,000 could still lead the price towards another bearish leg in the coming weeks, so it is important to wait for confirmations. If the price crosses this zone, there will be a good chance that it will continue its rise towards $42,000.level which will correspond to the next resistor SSB.
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Bitcoin (BTC) to $42,000 soon?
On a lower time frame, Bitcoin is still sitting below its resistance around $32,000. As we mentioned above, breaking through this resistance again would allow BTC to relaunch towards SSB Weekly towards $42,000, a level that would perfectly correspond to a price return to the upper part of this extension pattern. where the price has moved since the beginning of the year.
Figure 2 – Daily Bitcoin Price Chart (Daily)
Will the price manage to break this resistance or should we expect a decline? We will tell you in the next few days. Anyway, be careful that BTC does not go back below $28,000 because then we would have the breakout of the lower trendline of the pattern, with a potential downside target around $20,000.
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Conclusion of this technical analysis
In the next few days, Bitcoin will need to break through its resistance at $32,000 to give a new bullish signal and allow the price to rise towards $42,000. So new increase or rejection on the way? Let your opinion be known in the comments.
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Chart source: TradingView