Bitcoin (BTC) Price Analysis July.23

in #bitcoin6 years ago

Bitcoin completed a Head-and-Shoulders Pattern last week as investors poured back into the cryptocurrency market. This reversal pattern provides strong evidence for future bullish growth. Investors were able to break above the 100-day moving average to test resistance at $7800.

Bitcoin Retracement Likely

After a strong week of investment, BTC spiked from prices around $6,000 to a monthly high of $7800. Several factors suggest that BTC will once again revisit lower prices before prices reach higher targets:

  1. Several indicators show that the market is "overbought". Bulls are losing power as bears begin to create selling pressure. The RSI, for example, shows strong evidence that a short-term price reversal is underway.
  2. Price has successfully reached the historically strong resistance level at $7800. This zone is historically a major zone of support and resistance. As a result, it is an ideal target zone where traders will attempt to take profits from their investments.
  3. A strong trending support line is established. This suggests that prices could revisit targets below $6800 before finding support for further rallies.
  4. Key Fibonacci retracement levels correspond with potential support levels at both $6800 (0.5 retracement) and $6500 (0.618 retracement).
    BTCpriceanalysis.July23.png
    BTC needs to find the strength to breakout above the resistance zone of $6800.

Disclaimer: The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, forex, or blockchain-based product. Past performance is not necessarily an indication of future performance. Trading is inherently risky. Please invest responsibly.

Coin Marketplace

STEEM 0.18
TRX 0.16
JST 0.029
BTC 76553.02
ETH 3040.86
USDT 1.00
SBD 2.64