BTC/USD: Technical Outlook, Edition #14 (06/06/21)

After tapping key levels, China FUD sends Bitcoin down again... Find out the analysis and see through the False Breakouts in today's edition

Bitcoin is coiling under considerable pressure with multiple ‘fakeouts’ (False Breakouts) above and below pennant support and resistance, sucking in liquidity to then later trap one-sided participants. 

Twice now, as BTC/USD was gearing for a break to the upside, FUD (Fear, Uncertainty, and Doubt) has leaked. Timing is hardly a coincidence to a technical trader when the FUD cannon is loaded and fired around key price zones. 

The BTC/USD H4 chart below illustrates how price action behaved and reversed right at the point of both upside breakout attempts. 

Moving forward, Bulls need to hold the significant 0.5 Fibonacci retracement level located around USD 34K. A daily close below the 0.5 level may see the price of Bitcoin fall further, down to local support at the USD 30K order block pictured below. 

See you again for the next update.

- q

Follow us for more detailed analysis on all markets, including Decentralised technology

Check out the links below

Subscribe to our newsletter, with daily content free for a limited time only:

Join our Facebook group and speak with likeminded traders:

Like our Facebook page for future updates:

The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions by our email recipients, publications, newsletter or website users.