- Bitcoin price is exploding on a five-month bullish divergence, but has yet to hit a critical hurdle.
- The 2022 POC at $19,089 will be a major blocker if BTC continues to extend higher.
- A daily candlestick close below $15,551 will invalidate the bullish thesis.
Bitcoin price is showing a recent explosive move that overcame an immediate hurdle. As impressive as this momentum is, BTC needs to tackle another level of resistance that will likely provide a major pullback.
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Bitcoin price kicks off bear market rally
The bitcoin price has risen around 9% in the past 11 days. The move comes after days of tight and directionless consolidation. Although BTC broke through the June 18th lows at $17,593, it needs to hold above this level for any sustained upward move.
A pullback towards the $17,303 intermediate support looks likely ahead of any massive move after the recent move. This retracement will allow the buyers to recover and push the price of Bitcoin to the point of control (POC) of 2022, which is the highest level at $19,089.
Breaking through this blockade will be crucial for the Bitcoin price rally to turn from a short-term move into a longer-term bear market rally. Investors should therefore be patient.
BTC/USDT 1-day chart
On the other hand, if Bitcoin price produces a daily candlestick near $15,551, it will create a lower low and skew the odds in favor of the bears. This development will invalidate the bullish thesis for BTC.
In such a case, the price of Bitcoin could revisit the support level of $13,575, which is the upper boundary of the potential macro bottom that extends up to $11,898.