Since hitting its 2019 high, Bitcoin has been consistently dropping valuation, with the market capitalization of BTC also falling below the $200 billion mark. Over the last few weeks, major support levels at $10,759 and $10,850 have flipped to become resistances, with Bitcoin’s latest support levels going lower and lower.
With the market losing bullish sentiment and Bitcoin’s trading volume clearly affected, there might be a turn of events surfacing in the market this week.
Pattern Analysis
It was observed that Bitcoin closed the week above the daily support range of $10,189 – $10,351, but remained under the resistance zone of $10,759 – $10,825, indicating that the trend was neutral at the moment.
However, a certain pattern was observed on BTC’s 4-hour chart over the last few weeks. Since 26 June, the price of Bitcoin plummeted, until it breached the psychological resistance of $10,000 and hit a weekly bottom at $9864.
Bitcoin spiked back after hitting the bottom and progressively grew over the following 7 days to a valuation of just above $13,000. The same pattern repeated itself next week, with Bitcoin witnessing a 2nd weekly bottom at $9,164 on 17 July. If the same pattern continues this week, Bitcoin might cascade into yet another bullish run over the next few days.
The Bollinger Bands over the same 4-hour chart were also suggesting a bullish sentiment for the cryptocurrency. The bands had broken away from the convergence pattern and were diverging, at press time.
Popular crypto-analyst Josh Rager shared the same sentiment and tweeted,
“Weekly/daily close was neutral. Closed in the range between primary support/resistance levels but volatility expected to happen this week, BBands starting to pinch on 4 hour. Hopefully we get some live action on the charts to start the week.”
According to a recent blogpost, Bakkt would begin acceptance testing for its Bitcoin Futures contracts on July 22, 2019, something which can potentially have a positive impact on the market.
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