Bitcoin is currently holding at the intersection of two important channel lines, as well as the 38.2% Fibonacci retracement of last month's bullish movement. (Happy August!) There is strong support here in the 7300-7500 range, as shown by the volume profile. Bitcoin is positioned atop the 200 SMA on the 12 hour chart, the 100 SMA on the daily chart, and it has tapped the 500 SMA on the 1 hour chart. Despite the lower low that has formed on the 1 hour price chart, the RSI is showing a bullish divergence. I am waiting for a higher low on the 1 hour chart and a bullish symbol to close on the daily chart today or tomorrow to confirm a bullish movement. The greatest resistance above is at 10,000. A bullish movement is likely to reverse there and retest lower support.
I believe a larger bearish movement from here is unlikely, but if this occurred, Bitcoin would likely hold at this level for quite some time before making a larger price movement. In the case of a bearish movement, the strongest support is at 6800. (61.8% retracement + neckline of previous reverse H&S pattern)
I am currently bullish on Bitcoin, but I have seen how quickly market sentiment can shift. Don't get left behind, up or down. Keep an eye on things and don't forget stop-losses!
I believe a larger bearish movement from here is unlikely, but if this occurred, Bitcoin would likely hold at this level for quite some time before making a larger price movement. In the case of a bearish movement, the strongest support is at 6800. (61.8% retracement + neckline of previous reverse H&S pattern)
I am currently bullish on Bitcoin, but I have seen how quickly market sentiment can shift. Don't get left behind, up or down. Keep an eye on things and don't forget stop-losses!