Dear readers, hello! Here Romain, for a technical review around the evolution of Bitcoin prices. What are the major technical supports? What targets are offered at the prices? Analysis of the situation of the king of cryptocurrencies.
The previous week showed a certain euphoria across all financial markets. Regardless of the news, prices staged a strong rally through Friday’s close. Also, the Central Bank of the United States raised its key rates again, again in an attempt to reduce this lasting inflation.
Business results will have added to serve it at the market, which should calm down in August, which is synonymous with holidays for traders. This Tuesday, the United States reignited tensions with China, after a visit to Taiwan. And to make matters worse, Russia immediately denounced this provocative behavior. This quickly calmed this euphoria in the financial markets.
Finally, this month will see the publication of inflation figures of the month of July, which will be expected by all, the price of raw materials having been in response during the month of July. Thus, these figures could serve as fuel to continue carrying the prizes.
Now is the time to take a look at the technical situation of the Bitcoin :
Bitcoin Monthly Chart: Downside Risks Remain!
The candle of the month July just closed and offers important information. First of all, that the support of $20,000 hold on, which remains essential not to go lower. But also, that the prices are blocked below the $25,000 and this is a significant point. A break of this resistance is essential for the long term. Technique by stumbling under this point, a retest of the support mentioned above is not not impossible.
Finally, Ichimoku remains very pessimistic. And always give as next support the $11,420the dish of Monthly Kijun. Even if this target remains most likely given the situation current, it is important to zoom in on shorter units of time to realize that yes, there are supports well before reaching this area.
Bitcoin – Weekly chart: Caution is the mother of safety!
Yes, bitcoin bounces back, and July was a profitable month for buyers. However, the indicator Ichimoku presents here a medium-term situation still criticism. Indeed, although prices have returned to the level of $23,000this movement represents only one bullish correction techniquein a bear market.
The Tenkanlocalized on the resistance of $25,000 has not yet been tested and therefore remains to be broken. And it is only once this breakout occurs that prices will be able to return to the zone of $30,000.
The volumes as for them remain high, on fund to consent. Also, it represents that many buyers enter the marketsince the beginning of the rebound.
Finally, the IRS weekly confirm its exit from the oversold zone. This favorable point for buyers should not be overlooked as it confirms that the rebound is accompanied by a loss of strength for sellers.
Bitcoin – Daily Chart: Maximum Neutrality
The daily chart offers a more bullish situation than these two predecessors. However, it is good not to claim victory too soon.
First of all the prices got rid of the $23,000, for the second time, and is currently testing this level. The candles must close above so as not to give sellers the opportunity to return prices in the previous range.
Also, the Ichimoku indicator confirms the current neutrality, with prices in the middle of the cloud. And the Delayed range is about to break, too, its daily kijun, which will confirm the first reversal signal initiated by the prices. To hope to go higher, the resistance of $25,000 is represented by the plate of Daily SSB. This level, as detailed above, is the key. It will determine whether or not the price can fetch the $30,000 during the month of August. For this buyers will have to show strength and break this level with significant volumes.
Finally, the RSI Journalist rest over 50which gives a positive note in the short term.
And the general market capitalization in all this?
Contrary to Bitcointhe total capitalization gives positive signs for the whole market.
Initially, prices broke their Weekly Tenkan and are now able to return to a much more important objective, located $1.5 trillion.
Also, in the short term, prices are now testing the Daily SSB which was broken, if the test is valid, it will be very positive for the market which will see a increase in liquidity for the benefit of all cryptocurrencies.
Thank you for reading this analysis. And tell you Saturday for the cryptocurrency analysis XTZ.
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