Bitcoin (BTC) Pending Bull Flag With $10,000 Eyed as Support

By July 24, 2019 Bitcoin Business
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(MENAFN - DailyFX) BITCOIN PRICE CHART – TECHNICAL OUTLOOKBitcoin (BTC) is roughly 25% lower from its year-to-date high of $13,880 printed back on June 26 Bitcoin could retest technical support near the $10,000 price level where the cryptocurrency may begin to stage an attempt to turn back higher Sharpen your skills as a trader with this free educational guide onBuilding Confidence in Trading

The price of Bitcoin (BTC) has drifted considerably lower since its impressive stretch of gains recorded during the first half of the year. WhileBTCcurrently trades around $10,300 – down about 25% from its 2019 high inked last month – the cryptocurrency threatens to rebound higher with a bounce off near-side technical support.

BITCOIN PRICE CHART: DAILY TIME FRAME (NOVEMBER 30, 2018 TO JULY 22, 2019)

Bitcoin Price Chart BTC Technical Analysis

The recent pullback in Bitcoin, although worrisome on the surface, could be a constructive pattern of consolidation for bullish momentum to continue. This is suggested by the bull flag forming on the daily BTC price chart which is highlighted above. Additionally, prospects for a bounce higher in bitcoin is also posed by BTC price action hovering around the critical level of technical support at $10,000.

This psychologically-significant area of confluence is highlighted by bullish trend support and the 38.2% Fibonacci retracement of the cryptocurrency's year-to-date trading range. Although BTC dipped below this support zone last week, the move to the downside seemingly lacked conviction as the cryptocurrency quickly rebounded.

BITCOIN PRICE CHART: WEEKLY TIME FRAME (JULY 31, 2017 TO JULY 22, 2019)

Bitcoin price chart BTC Technical Analysis

The $10,000 price level is also highlighted by the 38.2% Fibonacci retracement level of Bitcoin's trading range since its all-time high back in December 2017. Again, this consolidation zone could provide bitcoin with a bit of buoyancy and help keep BTC bid and a bullish bias intact. If bitcoin fails to hold this key technical support level, however, price action could swiftly sour and drive BTC down toward the $7,000 price area.

BITCOIN PRICE CHART: 4-HOUR TIME FRAME (JUNE 10, 2019 TO JULY 22, 2019)

Bitcoin Price Chart BTC Technical Analysis

Zooming back in on a closer time frame, there are two well-defined trendlines BTC price action could continue consolidating between and are worth keeping close tabs on. That said, bitcoin price action appears likely to keep coiling in the short-term as it aims for a retest of its critical support zone around $10,000 before making its next push higher. A breakout above trendline resistance connecting the July 10 and July 20 highs, if confirmed, could see bitcoin bulls target the $11,500 price level. Conversely, if technical support fails to hold, the world's most popular cryptocurrency could sink further with bears potentially eyeing $7,000.

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-- Written byRich Dvorak , Junior Analyst forDailyFX.com

Connect with@RichDvorakFXon Twitter for real-time market insight

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