Some thoughts on BTC's price action.
Bitcoin is currently testing a large support zone relative to past performance. Several features make the $6100 area extremely important for future market preparations. $6150 proved to be an important zone throughout the month of June. Here are several reasons why prices could reverse around this price point:
-This price zone also happens to be the .612 retracement in relation to BTC's most recent price swing.
-This price zone further corresponds with June's trending resistance line. Whenever price breaks above a resistance trend line, that trendline will often act as a support zone for future price movements.
-If price can successfully find support at this level, a special pattern known as the "Inverted Head and Shoulders Pattern" could likely follow. This pattern is well-known in technical analysis and provides strong evidence for long-term bullish movement.
Furthermore, indicators also represent an oversold market, which suggests that a bullish upswing is likely. Depending on how quickly the market heats up, future prices could easily retest resistance around $6800.
While the market looks poised for a bullish bounce, a bearish fall could also occur. Assuming that BTC's price falls below support around $6100, it is possible that price could retrace to retest support around $5600.
Disclaimer: The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, forex, or blockchain-based product. Past performance is not necessarily an indication of future performance. Trading is inherently risky. Please invest responsibly.
