After a period of relative quiet, Bitcoin BTC has put together a solid early-August. Prices are back above $11,000, rebounding from a hard test beneath the $10,000 psyche level. At this point, the intermediate-term bullish trend is valid and BTC is in a position to challenge Tuesday’s highs near $12,500.

In the cryptosphere, no news is frequently good news. This week has brought a muted news cycle, unfettered by talk of IRS intervention or troubles surrounding Facebook’s Libra. For the moment, all is calm and cryptos are grinding north.

Bitcoin Steady Above $11,000

The past seven days have been solid for Bitcoin on the cash markets. Values are up 12.5% and have established a value area near $11,500. For the time being, BTC is certainly showing signs of life.

August Bitcoin Futures (BTC), Daily Chart
August Bitcoin Futures (BTC), Daily Chart

As far as CME Bitcoin futures go, volumes have been growing since June. This week has brought decent action and an opening GAP up. Here are the key levels to watch in this market:

  • Resistance(1): June High, 14220
  • Support(1): GAP, 11070 to 10870
  • Support(2): Bollinger MP, 10802

Overview: It looks like $11,000 is shaping up to be viable support on both the cash and futures BTC markets. The opening week GAP (11070-10870) for August Bitcoin futures is very likely to be tested at some point. Given its proximity to the big-round-number of 11,000, we may see some bids hit the market in this area on the cash markets as well. 

For now, a bullish bias toward BTC is warranted. Until we see another test below $10,000, holding longs isn’t a bad way to play this market.

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