Trader explains whether the Bitcoin price support level will hold

A practicing trader Dmitry Перепелкин explains the current market situation.

After breaking through the resistance level of $12 000, the Bitcoin price could not hold above this mark and, for a day, returned to the triangle pattern formation. We have already seen a similar scenario on June 1, 2020, when Bitcoin broke through the $10 000 level but did not hold above the price barrier.

When an asset breaks through a historical resistance or support level, it is important to watch the market’s reaction over the next few days. Breaking the level is not enough. The key is to consolidate above the price level for several days. Only then can one speak confidently about further growth or decline.

BTC/USDT is currently testing a sloped support line from which the price has repeatedly bounced back upward and updated local highs. Will the support level hold this time as well? We are watching the market’s reaction.

BTC/USDT still maintains an uptrend that began in mid-March 2020. If we look at the EMA 100 and EMA 200 moving averages, Bitcoin is trading above these lines. This suggests that buyers on the market significantly outnumber sellers.

If the price breaks out of the triangle formation and crosses the EMA 100 and EMA 200, that would indicate the price could retreat to the $10,000 level.

Take note of the chart ZRX/USDT. The price has hit the $0.50 support level and has already retraced about 8% back up. However, ZRX remains in a “flat-bottom triangle” formation, indicating strong selling pressure. A break of the $0.54 resistance level, as well as a break of the inclined resistance line of the flat-bottom triangle, would signal a rise to the $0.60 level.

Take note of the XRP/USDT chart. The price moved beyond the Descending Channel formation, breaking the upper boundary on August 14. However, after failing to break the previous high at $0.345, the price gradually trends downward, testing the $0.28 support level. A likely drop to $0.27. Growth will be possible when the price from the current trading range breaks above the $0.29 resistance line.

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