Bitcoin at $60K in play once again despite bullish run
Bitcoin fell sharply below the $70K resistance line and kept falling into the London trading session. The price of BTC/USD was circling the daily open at about $66,6K, according to statistics from Binance.
The day before had been incredibly erratic, with the popular crypto asset falling by over 6%, a couple of hours after first hitting $70,000 but failing to maintain that level of activity — an all too common sequence of events.
Bitcoin’s price rose 4% over the next three days on July 25, when it retested the daily support at $64,737. The weekly resistance level of $69.6K, is currently being rejected.
The ascending trendline and the daily support at $66,406 could hold, allowing Bitcoin to increase 10% and reach its high of $71,997 from June 7.
The Awesome Oscillator and Relative Strength Index (RSI) indicators are trading above their neutral levels of zero and fifty on the daily chart. This tremendous momentum indicates that the market is quite bullish.
However, creating a lower bottom on the daily timeframe, closing below $62,736, a break below the rising trendline would turn the market structure from bullish to negative. In such a situation, the price of Bitcoin would drop by 10% and retest its low of $56,405, which was reached on July 12.
If drops below these levels, sentiment would create a short squeeze enabling the BTC/USD pair to rally at the higher end of its longer-term trading range.
Consequently, a closure above the June open is favorable, and if the candle closes above $71,320, there is a strong positive bias. This would be 2024’s highest monthly close.
Moreover, this scenario holds as long as prices stay above the $65,000 – $66,000 range, the bulls have a claim. Save for the July opening around $62,500 further south to prevent bearish confirmations. Bitcoin shows strength on the weekly time frame as it absorbs liquidity below the mid-range and then re-enters it by closing above this region and the previous candle.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals