Bitcoin Price Tests Resistance as Traders Question New Bull Market
Bitcoin's price surged past $80,000 overnight, reaching as high as $81,300 before pulling back to around $79,000, according to chart analysis by Verified Investing chief market strategist Gareth Soloway. The sudden drop has left traders wondering whether this rally signals a new bull market or just resistance in an ongoing bear market.
Soloway pointed out several technical warning signs on the chart, including growing upper wicks on recent candles, which indicate increasing selling pressure as the price rises. He also noted that a trend line previously serving as support is now acting as resistance after being broken and retested.
Furthermore, Soloway highlighted a cluster of resistance levels stacking up in the $80,000 to $83,000 region. To confirm a genuine trend reversal, he emphasized the importance of Bitcoin making a higher high compared to its prior swing high, currently sitting at $82,830.
Soloway stated that even a break above this level would only mark the 'beginning stages' of confirming a new bull market and not definitive proof on its own. If Bitcoin does confirm a higher high, Soloway outlined two possible support zones for a subsequent pullback: $73,000, based on prior price action, or $67,000, which he considers stronger given the prior consolidation and breakout pattern at that price.