Bitcoin Resumes the Uptrend After Forming a Base at $9,000
Bitcoin retraced lower during July, but it found support at $9,000 and now the buyers are pushing back up again
BITCOIN has been really bullish during Q2 of this year, after consolidating in Q1, which followed a year long bearish trend in 2018. Cryptocurrencies are quite trendy and the price action of the last few years show that. The buyers pushed above the $10,000 level without any resistance in June, but in July Bitcoin pulled back lower, which was overdue after the strong bullish trend.
The price found support at the 50 SMA (yellow) on the daily chart in the first attempt and bounced off of it, but the sellers returned again and by the end of last month, they broke below the 50 SMA. But, they couldn’t push below the previous low of the same month at $9,000, which was also the high back in May.
The price formed two doji candlesticks above that area, which are reversing signals after the pullback. The price turned higher last week after those candlesticks but it was holding on below the 20 daily SMA (grey).
This week, we see a bullish gap in Bitcoin, followed by a strong bullish candlestick yesterday, so it seems like the uptrend is back in place and the buyers are in control. Now the $9,000 level has turned into a strong support area where we can look to go long on Bitcoin if we see another pullback down there.
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