Bitcoin marked its ninth weekly candle in the red as the bears are still in control of the market. Bitcoin saw a relief rally late Sunday to start this week off on a positive step, pushing the price of Bitcoin above a significant US$30K support level. Bitcoin bounced off a low of US$26,350 on May 12th, and has been trading between US$28-$31k for the last two weeks.
Will the Relief Rally Hold?
Bitcoin up almost 6% as of this writing, marking a weekly high of US$30,723. This mini-rally was much needed as Bitcoin struggled with a record nine weeks in the red, marking lower lows and lower highs. The question that everyone wants the answer to is will this rally be enough to trigger a bull run? The simple answer is: it is too soon to tell. Many people who invest with emotions will see Bitcoin up 6% and think the bull run is here, but looking closely, Bitcoin is still within the same trading range it has been for the last two weeks with strong resistance at US$30,500.
Bitcoin has shown strong support at $28K the last two weeks after testing the support multiple times. This rally to test the resistance at $30,500 is a good start but it would be premature to call it a bull market. A weekly green candle close above the resistance may entice those waiting on the sideline to jump in for further upside in the short term. It is exciting to see some upward action for a change and how that will play out in the near future.
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