- Bitcoin price came under selling pressure last Thursday with markets rolling over into negative territory.
- BTC was able to pair the losses and tried to extend during the weekend.
- A technical study is keeping upside price action muted for now.
Bitcoin price rolled over last Thursday after markets underwent some correction. Yield prices collapsed and dragged equities with them. Safe havens were sharply in favor, and riskier assets, like cryptocurrencies, got thrown off the books.
But again, the resilience in cryptocurrencies is shown this weekend, with Bitcoin pairing its losses and even looking for further upside gains.
Bitcoin price is like a weed, it just keeps returning
Bitcoin price cannot be kept at bay for long. For the second weekend in a row, BTC pared losses that occurred the prior week and even looked to make new gains.
Unfortunately, this is where this pretty picture ends as Bitcoin price struggles to make new highs today. The problem lies in the fact that there are a few significant indicators just above the price action where BTC is today. First, it has used the 55-day Simple Moving Average (SMA) as a reference point these past few days for both buyers and sellers. Bitcoin price is swinging in a tight range up and down that SMA.
On the upside, Bitcoin price has the 200-day SMA coming in at $35,051, which perfectly aligns with that black flat line top that originates from July 1. This means BTC has two substantial hurdles to jump over. Just a few bucks above there, it has the green ascending trend line that will act as an entry point for short sellers to come in at $35,537.
But positive news is there as well. With the recovery from this weekend, a new parallel trend line has been formed, so it looks like Bitcoin is in a trend channel in the short term. It will be critical to see if the buyers can keep BTC in that trend channel today and tomorrow.
BTC/USD daily chart
Wait for the pop higher above the 200-day SMA and the green trend line before really going long or adding to any long positions. Once Bitcoin is above this trifold hurdle, $36,709.19 will be the next port of call for any profit-taking and the retest for any further upside. This level has been well respected since mid-June, and BTC has not been able to reach it since.
On the downside, the bottom line of the trend channel is one to watch. Should that break, a fall to $30,000 looks ready.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Here are the best and worst-performing cryptocurrencies in H1 2024
A recent report by Crypto Koryo on Wednesday revealed meme coins as the top performers among cryptocurrencies so far in 2024, with several altcoins coming in behind. The worst-performing tokens are DeFi and governance tokens.
Ethereum poised to follow Nvidia's steps as Bitwise files updated S-1 draft
Ethereum (ETH) is down 3% on Wednesday following Bitwise filing an updated S-1 draft and a wider market downturn with potential Mt. Gox BTC supply flooding the market.
What to expect from altcoins as ETH ETF approval draws closer
As the crypto market continues consolidating on Wednesday, altcoins show mixed signals ahead of the spot ETH ETF launch. Many have predicted that the alt season may not occur in this cycle following the market lull. However, two key metrics suggest otherwise.
PolitiFi meme coins surge as Biden support lowers
Crypto prediction markets favor Kamala Harris over President Joe Biden as Democratic nominee in upcoming presidential elections. Meme coins based on Vice President Harris rallied amid BODEN token's 30% decline. Other tokens based on possible replacements for Biden experienced similar surges.
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.