Analyst: this pattern shows Bitcoin could be bound for a massive July breakout

Analyst: this pattern shows Bitcoin could be bound for a massive July breakout

The past couple of days have been rocky for Bitcoin (BTC), with the benchmark cryptocurrency facing some notable downwards pressure in the time following its recent rejection at $9,600.

It is important to note that the rejection at this level – although bearish over the short-term – may actually throw Bitcoin into a highly bullish long-term technical formation that could result in another major breakout in July of this year.

In order for this pattern to be confirmed, however, it is imperative that the crypto establishes strong support around $6,800 if it sees a significant pullback, as a defense of this level could lead the crypto to enter a bullish accumulation phase.

Bitcoin inches towards $9,000 as the technical situation grows bearish

At the time of writing, Bitcoin is trading down just over one percent at its current price of $9,200, which marks a notable decline from daily highs of $9,400.

Bitcoin’s buyers were able to defend against a drop to $9,100 earlier today, but the bullish response to this level has been tempered.

Because of this, it does appear that a visit down to the BTC’s key short-term support at $8,800 is imminent, which is further supported by technical analysis.

Teddy – a popular cryptocurrency analyst – spoke about this in a recent tweet, telling his followers that BTC is looking relatively weak on its daily chart.

“Daily looking relatively weak: – MACD testing a bear cross – High 8s never tested as support – Mid 7s never tested as support (keeps me awake at night).”

Bitcoin BTC
Image Courtesy of Teddy

BTC could enter bullish accumulation phase if it holds above this key level

If Bitcoin’s bulls are able to hold it above $6,800 in the case of a strong pullback, this move could be followed by an extended bout of sideways trading that marks an accumulation phase.

TraderXO – another well-respected analyst – mused this possibility in a tweet, saying:

“BTC – The ‘bigger’ picture. If this is one big accumulation phase and the local top is almost in… Then I wont be surprised to see either one of the schematics playing out on btc. The next cycle lows are all for buying imo!”

Bitcoin BTC
Image Courtesy of TraderXO

If this pattern does prove to be valid, then Bitcoin may see a period of range-bound trading until July of this year, which is when the “spring” phase of this pattern could resolve in a massive upwards movement.

Posted In: , Analysis
Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Cole Petersen

Cole Petersen

Journalist @ CryptoSlate

Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.