Bitcoin could retest its June 1 high if it manages to hold at least above $9,250, according to prominent market analyst Michaël van de Poppe.
The Amsterdam stock market trader said in a Friday tweet that he sees the BTC/USD exchange rate hitting $10,450 in the coming sessions. It is the same level that halted Bitcoin’s uptrend earlier this month – and sent its price to as low as $8,895.
Nevertheless, the cryptocurrency underwent a sharp upside recovery and closed above a short-term support range – defined by $9,250 and $9,300. Mr. Poppe said holding the area could prompt Bitcoin to consolidate sideways before it moves above $9,550.
Bitcoin price chart on TradingView.com showing it holding support above $9,250-$9,300. Source: TradingView.com, Crypto Michaël
Mr. Poppe further indicated that breaking above $9,550 would lead to an extended breakout trend, first towards circa $10,000, followed by a retest of $10,450.
A Significant Bitcoin Support Area
The range presented by Mr. Poppe also coincided with another critical support defined by Bitcoin’s 50-day moving average (the blue wave in the chart below).
Bitcoin price chart on TradingView.com showing it testing support near its 50-day moving average. Source: TradingView.com
Traders have lately maintained their bullish bias above the 50-DMA. Staying below the blue wave has raised possibilities of Bitcoin testing levels near or above $10,000, a critical resistance level.
The bias has received further strength from a confluence price floor near $9,200. Bears, for instance, attempted to close below the said level June 11 and June 15. Nevertheless, bulls neutralized the downside sentiment with an equally intense buying pressure near the dip.
Each move below $9,200 met with a sharper pullback.
Bitcoin price chart on TradingView.com showing it testing support near $9,200. Source: TradingView.com
Part of the reason why traders show a more robust accumulation behavior near $9,200 is its historical relevance during the 2019 price rally. The level behaved as a concrete price floor during Bitcoin’s uptrend towards $14,000.
Meanwhile, it also capped the price from falling during Bitcoin’s price correction from the same top.
A Dissenting Scenario
A downside scenario is also brewing inside the Bitcoin market with the formation of a Falling Wedge pattern.
As NewsBTC covered earlier, the technical indicator point to the cryptocurrency breaking lower to as far as $8,600 before it breaks out of the range and retests $10,400-$10,500.
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.