Treading Water: Bitcoin Bulls Await Break Above $7,780

Still in bearish territory, bitcoin need to clear resistance at $7,780 in order to regain a bullish bias.

AccessTimeIconJun 6, 2018 at 11:10 a.m. UTC
Updated Sep 13, 2021 at 8:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) continues to operate in bearish territory and only a move above $7,780 would put the bulls back into the driver's seat, the technical charts indicate.

As of writing, the cryptocurrency is trading at $7,591 on Bitfinex. The cryptocurrency was on the defensive yesterday, courtesy of a failed breakout and a rising-wedge breakdown and looked set to re-test the recent low of $7,040.

However, sellers ran out of steam at $7,372, as indicated by a doji candle and prices moved back above $7,600 in the Asian session today.

While the exact reason behind the bear exhaustion is unclear, it fits with a recently observed pattern that bitcoin changes direction in favor of the weaker side on, or close to, the sixth day of every month.

The cryptocurrency is down more than 30 percent from the recent high of $9,990, meaning the bulls are on the back foot. So bitcoin could turn higher today, as indicated by the historical pattern.

Furthermore, the fear of getting trapped on the wrong side of the market may have forced the bears to stay on the sidelines, despite the false breakout and rising-wedge breakdown.

That said, the cryptocurrency is still treading waters in the bearish territory, as seen in the chart below.

4-hour chart

download-3-22

The bearish rising-wedge breakdown remains valid as long as bitcoin keeps trading below $7,780 (June 3 high). So, the downside is still in play and the sell-off could accelerate if the support at $7,372 is breached.

However, the 50-candle moving average (MA) has started rising in favor of the bulls and the 100-candle MA has flatlined (shed bearish bias), so the odds of a break below $7,372 are low.

View

  • A high volume break above $7,780 would add credence to the quirky "6th of the month" pattern and signal a bullish trend reversal. In this case, prices will likely rise to the 10-week MA, currently located at $8,310.
  • A break below $7,372 would put the focus back on the rising-wedge breakdown and allow a drop to $7,040.

Hourglass image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.