- Bitcoin price has risen about 7% after forming a bottom on July 1.
- While a pullback looks likely, the uptrend will resume if BTC breaks the midpoint of the range at $35,618.
- A break of the $30,000 support level will invalidate the rise.
Bitcoin (BTC) price has been trading in a narrow range since May 19. While the low ranges are sliding down, the high range seems untouched for more than a month. Therefore, the current move may form a new high since May 19.
Bitcoin price poised to rise
Bitcoin price consolidation has been going on since May 20. A new low was formed at $28,850 on June 22 and BTC is up 20% to the point where it is currently trading at $34,700.
A decisive close above the 50% Fibonacci retracement level at $35,618 confirms the start of the uptrend, while failure to do so will result in a pullback.
The pullback could extend to the demand zone ranging from $30,573 to $31,979. Such a downward move does not invalidate the bullish thesis, but compels it.
Despite multiple attempts, the high levels have not been tested for a while. Therefore, traders can expect BTC price to retest $42,451 this time after breaking the intermediate resistance levels at $36,600, $39,146 and $40,516.
On the other hand, a breakdown of the demand zone from $30,573 to $31,979 would indicate that the sellers are in control. However, a decisive 4-hour candlestick below $30,000 would invalidate the bullish argument and trigger a sell-off to the lows at $28,785.
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