Bitcoin hits resistance at $79.300 after sharp rally

Bitcoin rose sharply last week, but stalled at $79.300, the top of the trading range in which the price has been moving for months. Analist CrypNuevo, who predicted this move in June based on a so-called Three Taps Pattern, sees the rejection as confirmation of his analysis. At the time of writing, the price is around $77.500, a slight gain of 0.3% over the past 24 hours.

Bitcoin is available at OKX and Bybit.

In short:

• Bitcoin was rejected at the top of the range at $79.300
• CrypNuevo expects a sideways move or limited correction before the price can rise further
• The 1W 50 EMA is currently being tested and serves as an important trend indicator

June projection comes true after 2.5 months

On 8 June, CrypNuevo published an analysis in which he expected the formation of a Three Taps Pattern around the bottom of the range during June and July, followed by a recovery move towards $80.000 or higher. That expectation has now been fulfilled.

The analyst says that last week he doubted whether the third bottom had already formed, causing him to miss the move in futures. He did hold a position in the spot market. According to him, Ethereum and gold are also following the same pattern from his earlier analyses, about which he will say more later this week.

Resistance at $79.300 and what can happen next

The price hit exactly the top of the range at $79.300 and was rejected there. CrypNuevo states that Bitcoin technically remains within the same range and that the rapid rise has left so-called liquidity imbalances in the chart. This makes a sideways move or a limited pullback the most likely outcome in the short term.

Notably, the Bitcoin price is positioned relative to the 1W 50 EMA, a weekly moving average used by many analysts as a trend indicator. Bitcoin moved below this level for a long time and is now testing it for the first time in months. The 4-hour 50 EMA is still lagging behind the price, which according to CrypNuevo is an additional reason to expect a consolidation phase first.

In the scenario where Bitcoin eventually breaks through the resistance, CrypNuevo targets a further rise towards $84.000. Other analysts are also looking at higher levels: Michaël van de Poppe previously mentioned $81.000 to $83.000 as the next target zone. The recent rally of more than 20% already led to the largest inflow wave at Binance since February, pointing to increasing market activity around the move.