Since May 20, Bitcoin (BTC) has been in an accumulation phase, fluctuating between $66,000 and $72,000. The price is forming a symmetrical triangle, indicating an impending breakout. This breakout could be initiated by either the bears or the bulls.
To anticipate the direction of this movement, we need to monitor several critical levels.
#Bitcoin Daily Price Chart
Analyzing BTC's daily chart, we see two significant trend lines: the upper line represents a downtrend, while the lower line indicates an uptrend.
BTC has tested the ascending trend line three times, each time bouncing back upwards. Bulls are strong at these levels, not allowing the bears to take control. Conversely, the bears prevent the bulls from breaking above the descending trend line, resulting in selling pressure. According to the price movements, the bears appear weaker compared to the bulls.
If the bears manage to breach the strong support established by the bulls, we could see a correction equal to the strength of this support. This critical level is at $67,500. A daily close below $68,000 could signal a victory for the bears.
If BTC maintains its position above the ascending trend line and avoids selling pressure at the descending trend line, breaking through the weaker bear resistance, we could witness an upward breakout. The critical level to watch above is $70,000.
Avoid using high leverage and taking excessive risks, especially during these consolidation phases. This advice is for your personal and financial well-being.
$BTC In summary, bulls are defending the $67,500 level as support, while bears are holding the $70,000 level as resistance. A daily close below $67,500 could lead to a 10%-20% downward correction. Conversely, a daily close above $70,000 could result in a 10%-20% upward movement.
