COINBASE:BTCUSD   Bitcoin / U.S. Dollar
BTC started the week of July 19th to 25th with the bearish movement, falling to the low of $29,300 on July 0th, however, a strong pullback rally followed and helped BTC to close the week in the green territory and formed a big bullish engulfing candle to close the week with 11% gain at $35,428. At the time of writing, BTC is trading slightly above $38,200.

This strong upward rally is most likely triggered by the massive short liquidation streak, in fact, it spiked to about $48K on Binance futures as over $100 Million of short positions were wiped off. However, BTC is still trading in its horizontal channel and it has to sustain above $41K that will act as a confirmation of trend reversal. Even after this 17% gain, the major trend of BTC is still bearish .

BTC is currently above 0.786 Fibonacci retracement level which is placed around $35K and also its 50-DEMA is also present in this range, therefore, the range of $34.5k to $35k will act as the nearest support level followed by the next support at $32.5K and $30K.

On the higher side, BTC is facing selling pressure from the upper band of the channel which is placed at $39.7K to $41K, also, its 100-DEMA which is placed at $38.6K is also acting as an immediate resistance, once we get a decisive breakout from this range and BTC starts sustaining above $41K, this will act as a confirmation to go long for the next wave.

On the plus side, Daily RSI has given a fresh breakout from its trendline resistance which it was respecting from past January 2021. Weekly MACD is also suggesting a trend reversal as it is trying to enter the positive territory. This depicts that the trend reversal can be expected in the coming days but a confirmation would be required to conclusively suggest that trend has reversed.


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