For the past couple of days, a battle has been raging, as bulls have stepped in to try to push Bitcoin’s (BTC) price back above $8,000. The leading crypto, after punching up to $8,140 during trading, managed to close the day (UTC) just a hair below $8k.
Getting safely back above this level might provide security and confidence enough for Bitcoin to go into a sideways consolidation, or even establish a new uptrend (which may not even be that healthy), rather than retrace to lower price levels.
Having put in good work yesterday, Bitcoin bulls will need to follow up today (June 8) as well, and close out the day slightly higher and above $8,000 – or else most likely be rejected and sent back down.
Zooming into the daily (above), we can clearly see what the parameters are for Bitcoin to maintain. BTC fought within the $8,000-8,100 range and was essentially rejected there, but managed to close the day above the important 21 EMA (blue). Volume was not really impressive yesterday, hardly outstripping the prior day’s reversal volume on the Coinbase chart.
Getting above at least the 9 EMA would be the logical next step, although closing above $8,100 would be a better outcome. A repeat rejection from this range and close under $8k would not be auspicious and would resemble a bearish tweezer top.
Zooming in for a more granular view (hourly, above), we note that Bitcoin is essentially wedged in between the 55 hour EMA and a local downtrend line, and will soon be forced out of one of the two. Continual rejections in the red zone have forced BTC back onto the moving averages, and the tiny bull flags that had been forming early yesterday have now diminished.
Overall, the longer BTC sits in this red zone being rejected, the less likely maintenance at this level becomes.