Bitcoin Forming Another Bullish Breakout Pattern and It Could Rally To $7.2K

Aayush Jindal

Last Updated: June 11, 2024 1:47 pm

2 mins read

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Bitcoin is up more than 4% and it broke the key $6,500 resistance area against the US Dollar. BTC price is forming a solid bullish trend and it could soon rally towards $7,000 or $7,200.

Bitcoin started a fresh increase after testing the $6,200 support area against the US Dollar.
The price is up close to 5% and it surpassed the $6,500 and $6,600 resistance levels.
There is a short term contracting triangle forming with resistance near $6,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue higher above the $6,650 and $6,800 resistance levels in the near term.

Bitcoin Gaining Traction

Yesterday, we saw a few bullish signs above $6,200 for bitcoin against the US Dollar. BTC price corrected a few points from the $6,600 resistance area, but it remained well bid near the $6,200 support area.

It traded as low as $6,159 and recently started a fresh rally. The bulls gained strength and were able to push the price above the key $6,400 pivot area. More importantly, there was a break above yesterday’s highlighted bullish flag pattern with resistance near $6,370 on the hourly chart of the BTC/USD pair.

It opened the doors for more upsides and bitcoin rallied above the $6,500 and $6,600 resistance levels. The price is up more than 4% and it traded to a new weekly high at $6,714.

It is currently consolidating gains above $6,600 and it is well above the 100 hourly simple moving average. An initial support is near the $6,580 level or the 23.6% Fib retracement level of the recent rally from the $6,159 low to $6,714 high.

There is also a short term contracting triangle forming with resistance near $6,650 on the same chart. If there is an upside break above the triangle resistance and $6,700, the price is likely to rally again. The next major resistance is near $6,800, above which the bulls are likely to aim $7,000 or $7,200 in the near term.

Downside Correction?

If bitcoin fails to clear the triangle resistance and $6,650 or $6,700, it could extend its downside correction. The first key support is near the $6,435 level since it is near the 50% Fib retracement level of the recent rally from the $6,159 low to $6,714 high.

The next major support is near the $6,290 level and the 100 hourly SMA, where the bulls are likely to take a strong stand.

Technical indicators:

Hourly MACD – The MACD is currently moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.

Major Support Levels – $6,580 followed by $6,435.

Major Resistance Levels – $6,650, $6,700 and $7,000.

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Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.