- Bitcoin price is getting squeezed in the short term for a breakout to the upside.
- A retest of the double top at $36,709 is justified.
- BTC must hold above $33,000 to stay bullish.
Bitcoin price was underwater alongside most other cryptocurrencies yesterday, under pressure by profit-taking after a solid rally during the weekend. This morning BTC already pared most of the losses and are back around the profit levels from Sunday evening.
Bitcoin price's 55-day SMA could put a lid on bulls
Bitcoin price has been on a roller coaster ride for the past few days since buyers came in to push prices higher during the weekend. After a complete retrace of those gains, BTC is back up again near $34,865.
Although the correction on Monday seemed heavy, Bitcoin bounced off the ascending green trend line starting on June 22, proving its strength. The trend line remained well respected and allowed buyers to jump back in.
A push further up is now the next step as short sellers will be pushed out of their positions and will wait on the sideline for another entry point to go long. That level will be around $36,709, a double top that has not been breached since June 19.
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BTC/USD daily chart
Either a squeeze or even a triangle play in Bitcoin is unfolding, and both should be expected to test the green ascending trend line or test the double top at $36.709 in the coming days.
Buyers must be cautious that just above that $36.709-level sits the 55-day Simple Moving Average (SMA), which puts an additional cap on Bitcoin going higher. This is a level to mark up as short sellers will be looking for this level to go short; and short-term buyers, to take some profit.
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