Ascending channel Bitcoin price breakout possible despite OKEx scandal
Earlier this week Bitcoin (BTC) price entered a bullish breakout to $11,725 following the previous week’s news that Square purchased $4,709 BTC but since then the price has slumped back into a sideways range.
Bitcoin has also largely ignored the majority of the negative news over the past two months and held above the $10K level as buyers show consistent interest in purchasing near this level.
Support retests are expected
It’s also worth noting that only about 1.5 weeks have passed since Bitcoin exited a 24-day long compression phase which was followed by the most recent breakout to $11,750.
Since the bullish breakout occurred the price has retested the $11,200 level as support but a deeper pullback to the 20-MA to test $11K as support wouldn’t be out of the ordinary. Even a drop to the $10,650 level near the 100-MA would simply be a retest of the descending trendline from the 2020 high at $12,467.
For the short term, it seems likely that Bitcoin price will trade in the $11,400-$9,700 area, a range which may turn out to be a swing trader’s paradise.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.