- The June 2018 low of $5,780 is proving a tough nut to crack, as expected. BTC has failed to close above that level for three days in a row, indicating a price pullback may be needed to fuel a sustained move to $6,000.
- BTC looks to be creating a double-top bearish reversal pattern with neckline support at $5,510 on the 4-hour chart. A break lower could yield re-test of the 30-day MA, currently at $5,294.
- A strong bounce from the 30-day MA could fuel a sustained rise to $6,000. That looks likely as the long-duration charts are biased bullish.
- A UTC close below the 30-day MA would shift risk in favor of a deeper drop below $5,000.
Bitcoin (BTC) could be in for a price pullback, having faced rejection at key price hurdle for three consecutive days.
The cryptocurrency market leader jumped above the April 23 high of $5,627 on Friday, bolstering both the short- and long-term technical setups.
However, despite the odds stacked in favor of a quick rally toward $6,000, the cryptocurrency failed to find acceptance above the June 2018 bottom of $5,780 over the weekend, according to Bitstamp data.
For instance, BTC clocked highs of $5,796 and $5,846 on Friday and Saturday, respectively, but closed below $5,780 on both days. Similar price action unfolded on Sunday, with BTC hitting a high of $5,782 before ending the day at $5,709.
It is worth noting that $5,780 was expected to offer stiff resistance. The level is important because BTC’s sell-off from May 2018 highs near $10,000 run out of steam at $5,780 on June 24. Subsequently, a bounce from that level was followed by an over 40 percent price rise to $8,500 by July 24.
Bitcoin’s recent failures to cross that threshold suggest a pullback and a bounce from the historically strong support level may be needed to recharge the engines for a sustained rise to $6,000.