Markets Update: Bitcoin Bulls Are Back Testing Key Resistance Levels
After a few days of consolidation, the price of bitcoin has started to move upwards after dropping to a low of $2290 USD per BTC earlier this week. On July 2-3 bitcoin’s value rose above the $2500 range and recently tested a high of $2595 on Bitstamp, this morning at 10 am EDT time.
Also Read: Scheduled Scaling Updates for the Bitcoin Network Are Getting Closer
Bitcoin Price Back on the Move Upwards As Bulls Take the Reigns
Our last markets update on June 25 was the start of a significantly longer than usual BTC bear market dropping below the sub $2300 territory. Since then the price rebounded back above the $2400 range and formed some consolidation and a triangular formation. A week later on July 3rd bitcoin is showing some bullish momentum as it tried to break the $2600 zone. Currently, the price per BTC is holding a weighted average of $2560 across global exchanges, with approximately a billion dollar’s worth of 24-hour trade volume.
Since bitcoin’s price downturn last week nearly every other cryptocurrency market followed its path. At the moment overall cryptocurrency market capitalizations are just above $100 billion but it dipped lower than that earlier this week. Out of all the crypto-caps, bitcoin is commanding a 41 percent market dominance, which is considerably higher than weeks prior. Asian bitcoin markets are still trading BTC at premium prices throughout a few exchanges, such as South Korea’s Korbit, and China’s BTCC with prices $50-100 higher at the moment.
Technical Analysis
While looking at the daily chart and the one-week chart bitcoin is showing bullish signs of continuing its move upwards. However, according to a few technical indicators, a seller’s market is still happening, and there will be some upside resistance over the next 12-hours. For instance, the gap between the 100 Simple Moving Average (SMA) is lower than the longer term 200 SMA showing there’s still some heavier sell walls to break. Stochastic and RSI trend lines reveal similar overbought conditions ahead. However, the past few days consolidation has created a nice butterfly pattern or symmetrical triangle and many traders on Trading View, Whale Pool, and other trading forums are betting “long” on the upside of $2900 or higher.
This Week’s Cryptocurrency News and Market Sentiment
Overall market sentiment has still been bearish due to the uncertain future of the bitcoin network’s possible changes. There are a few scaling plans down the road this summer, but some of them don’t align well with the “community consensus”, depending on what side of the debate you are on. Currently, there are multiple new bitcoin implementations being tested and the possibility of Segwit2x, a user activated soft fork (UASF), and a user activated hard fork (UAHF) being deployed. Moreover, Craig Wright is back and has revealed his opinion about the state of the network during The Future of Bitcoin conference this past weekend in Arnhem. This particular topic has also sparked a massive debate between members of the bitcoin ‘community.’
On the flipside, countries like South Korea and India may be creating bitcoin regulation in the near future. Much like Japan, these areas may legitimize the currency legally as a form of payment, and many believe these decisions will push the price up. Japan has recently removed its consumption tax from bitcoin sales and purchases. At the same time, Australia stopped bitcoin double taxation in the country as well on July 1st.
Bear Scenario: At the moment there is heavy resistance for bitcoin’s price to break above the $2575 territory, but at the moment buyers are chipping away at those walls as we speak. If a downward break happens again, there is a foundation of $2400-2450 at the moment and swings should not go lower than that unless panic takes hold. Currently, buyers seem to be regaining control and bears will likely have to wait for larger breaks and bigger legs down.
Bull Scenario: Currently, bulls have left the sidelines and are back in the game after finding better positions during last week’s lows. Bitcoin’s price needs to break key resistance points above the $2600 range to get velocity moving faster. Surpassing the previous month’s all-time high this July at $2600 may be possible, but as the network’s proposed scaling updates get closer BTC markets may get choppy.
What do you think about the price moving back up the ladder? Do you think the price will come close to $3K again? Or do you think the upcoming uncertainty will keep the price down? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images via Shutterstock, Bitstamp, and Bitcoin.com.
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