The price of Bitcoin ran higher on Monday, after a long consolidation period that squeezed a downward sloping trend line toward a rising support trend line (see the triangle and green and red numbered circles on the chart above).
The price on the hourly chart moved above the downward sloping topside trend line on Monday at around $28700, and did not look back until it peaked at $30438 on Monday and started the more recent up and down consolidation range.
There was a break to a new high at $30575 on Tuesday, but momentum faded. The low today at $29875 stalled just ahead of the corrective low from Monday at $29830.
The current price trades above the $30,000 level at $30072 as I type.
What next?
Clearly the buyers are trying to maintain control and keep the corrective pressure to a minimum. Having said that, the topside also has resistance sellers between $30,438 and $30,575 (three highs are within that area – see yellow area on the chart above).
So buyers and sellers are battling it out and looking for the next shove outside of the $29,830 to $30,575 range.
Taking a broader look at the daily chart below, on more upside momentum, the 50% midpoint of the move down from the March 2022 high comes in at $31,857. Above that, the May 2022 high price stalled at $32,376. If the buyers are to increase control on the daily chart getting above those levels would be required from a longer-term perspective.
On the downside, the 38.2% retracement of the same move down from the March 2022 high comes in nearly $28,000 level. Move below that level would disappoint the buyers that are looking for more upside potential.
NOTE: The move to the upside from the March 2023 low based right near the 200 day moving average (green line in the chart below). That has also been a catalyst for a more bullish bias for the digital currency.
This article was written by Greg Michalowski at www.forexlive.com. Source