To breakout or not to breakout? That is the question…

It has been a good start to the week for the markets recovering strongly from the weekend lows and Bitcoin has climbed more than 15% from the weekend lows. The key psychological level of $30k was reclaimed with conviction and it is now trading around the resistance level of $35,300. We are potentially on the cusp of breaking out of the recent trading range on the upside.

Bitcoin ($35,660)

🐮 Major resistance level is seen at the $35,300 — $35,500 (1) region. A clear break of this area could see a rapid move towards the 61.8% Fibonacci Retracement level of $ 36,500 (2), followed by the 78.6% Fibonacci Retracement at $38,650 (3).

🐻On the downside, a break below yesterday’s low could bring $31,850 (4) into play and then possibly take prices to $29,500-$30,000 (5). A further retreat under this level could lead to a more significant decline towards the lows seen on 22-Jun ($28,800) (6).

Ethereum ($2,186)

🐮 Ethereum would need to recover the key level of $2,165 (7) before potentially testing the next upside target of $2,306 (8).

🐻 However, a rejection at $2,165 could take price towards a pullback under $1,980 (9) and last week’s lows at $1,700(10).