Jonathan Morgan
Independent Analyst
- Bitcoin price trades higher, with a greater than +10% gain from the Monday lows.
- Intense Fibonacci and Ichimoku resistance levels could stall further upside momentum.
- A bull trap could generate a BTC continuation move south.
Since Monday, Bitcoin price has made some impressive moves, driving higher from the Monday lows of $43,444 to the current weekly high at $46,134. Bulls have pushed Bitcoin price higher with little resistance or retracement. However, strong resistance levels could trigger an end to the current bullish momentum.
Bitcoin price charges higher, key resistance levels ahead could trap bulls
Bitcoin price has maintained a steady and unchecked drive higher since hitting the $43,000 value area on Monday. Very little, if any, selling pressure has occurred over the past three trading days. However, some selling pressure should be expected near the $48,000 value area.
The daily Kijun-sen and Tenkan-Sen share the $48,000 level with the powerful 61.8% Fibonacci retracement level. The combination of these Ichimoku and Fibonacci levels creates a natural stopping point for Bitcoin price. The Ichimoku indicator that bulls will need to watch for is the closing position of the Lagging Span. If bulls can close Bitcoin above $49,500, then Bitcoin will be in an undeniable bullish phase, one that will likely see it return to its prior all-time highs.
BTC/USD Daily Chart
On the flip side, bears will need to see how Bitcoin price reacts to the near-term resistance. If they can push Bitcoin price lower and close anywhere below $46,700, then a $40,000 value area test is highly likely. The Relative Strength Index shows a very neutral condition and the Optex Bands indicate neutral to slightly extended given the slope of its line.
The Composite Index will likely be the triggering event for any bullish expansion. Bulls and bears will want to observe what happens when the Composite Index crosses its fast and slow-moving averages. A slope that is shallow signals weakness. It's a tricky area for both sides of the market, so vigilance is vital.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.