Bitcoin fell a bit on Wednesday, getting rejected by the 200 Week EMA around $36.6K and giving back most of yesterday’s gains to fall to just under $35K. Getting rejected is not bullish, but repeatedly attempting and even briefly breaking above a resistance level could mean a bullish breakout is looming, even if a micro one.
(June 30, 2021 8:30PM EST)
Looks like Bitcoin’s bottom is all but in, so now we’re looking for an impulsive breakout higher. If Bitcoin can break above the 200 Day EMA and stay above it, then it can target the 50 Day EMA which is nearing the $40K level. A break above there would be extremely bullish and officially snap this short-term downtrend, putting us back on track to higher highs. Another drop to $30K would be concerning and a break below $30K would be devastating and possibly trigger another selloff to the low-$20Ks. We’ve been trading mostly sideways in a $10K range for nearly 2 months now, resembling that of a consolidation or rounded bottoming pattern, which commonly precedes an impulsive move. In this case, I think the technicals and fundamentals point to a breakout higher, as this bull market cycle appears to have plenty of gas left in the tank.
Bitcoin Dominance has pulled back a bit after a bullish divergence where it crested 48%, retreating to the 50 and 200 Day EMAs around ~45%. It will be interesting to see if BTC.D finds support at both daily EMAs or if it slips lower. If it holds as support, BTC.D should consolidate a bit before it heads back up to 48% and 50%.