The price of Bitcoin (BTC) dropped to as depression every bit $nine,100 on May fifteen following a strong rejection at $ix,900. In the short-term, traders yet anticipate another upsurge to the $x,000 surface area, or at least to the $9,800 resistance level.

Crypto marketplace daily price nautical chart. Source: Coin360

Bitcoin at a disquisitional point that may decide its trend in Q3 2022

Tiptop traders expect the cost of Bitcoin to surge to $9,800 after the cost demonstrated a classic technical pattern known as a falling wedge breakout.

In the concluding 36 hours, the Bitcoin price slid downward from $ix,970 to $nine,100, with barely any try of a meaning recovery. That led Bitcoin to consolidate nether a descending trendline with relatively low book.

Bitcoin breaks out of a brusk-term trendline. Source: Satoshi Flipper

Simply on May 16, the price of Bitcoin recorded its first clean breakout since a local meridian above $9,900 was accomplished on May xiv. The rebound of BTC from a central support area at $9,200 created a strong foundation for Bitcoin to atomic number 82 a near-term upsurge to higher resistance levels.

Cryptocurrency trader Satoshi Flipper said:

Archetype falling wedge breakout, then retest. Expecting to take another shot at 9.8k.

Whether the price of Bitcoin will encounter a continuation of an uptrend to a higher place $10,000 in the near-term is another question. Even if BTC climbs to $9,800, in that location are two scenarios that brand a bearish and a bullish trend equally probable.

The bearish and bullish scenarios for BTC

If the price of Bitcoin rises to $9,800 and rejects in a similar manner as information technology did when it barbarous steeply from $9,970, it leaves BTC vulnerable to three sequent lower highs at a high time frame.

Simply put, subsequent to the rejections of $10,085 and $9,970, a breakdown at $ix,800 would bespeak three rejections of a multi-year resistance area inside a short period of time.

3 potential consecutive lower highs on the daily Bitcoin chart. Source: Tradingview

A cruel rejection of Bitcoin at $9,800 would open up it upwards to a sizable pullback in the nearly-term. Heavy support levels are found at $6,800, $7,100, $vii,700 and $eight,100, which serve as potential areas of correction.

The most optimistic scenario would see Bitcoin repossess $9,800 and a powerful rally above $10,000. Such a motility would print historically accurate technical formations like a cup and handle pattern that may spark a new prolonged rally.

Bitcoin exchanges balance decline. Source: Ceteris Paribus

A consequent increase of Bitcoin withdrawals from exchanges may eternalize the bullish scenario of BTC over the medium-term.

Information from glassnode and crypto trader Ceteris Paribus shows that exchange balances are down by around $3 billion since BTC dropped to $three,600 on March xiii.

On-chain data indicates that fewer users and investors are compelled to sell BTC at current prices, making the likelihood of an extended Bitcoin rally increase despite its 160% price fasten inside the last two months.