Bitcoin Price Analysis (BTC) – August 5
Bitcoin price returned above $11,000 after regaining lost ground on July 8 and July 22, when the world’s largest cryptocurrency suffered bearish ruptures that pushed its price below $10,000.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $12,500, $12,700 $12,900
Support Levels: $9,000, $8,800, $8,600
Yesterday, Bitcoin surpassed $11,000 for the first time in 21 days. The BTC price stagnated and was retested on August 4 in the $10,600 level. There was a break above $11,000, 10 hours after his last sell-off. The last time we saw BTC change hands at $11,582 after a one-day candle went over $11,100. The long-term outlook now favors the bulls, given the daily close produced a large bullish engulfing candle with eyes now set on the daily resistances at $11,400 and $11,600.
However, the movement of BTC within the Bollinger Bands and above the 21-day moving average at the moment is ready to sustain any further pushes to previous resistances seen at $12,500, $12,700 and $12,900, but given today’s trajectory that is certainly possible as RSI (14) moves above level 60 on the daily chart. Now, the supports to watch out for are $9,000, $8,800 and $8,600 respectively.
BTC/USD Medium-term Trend: Bullish (4H Chart)
BTC/USD has moved above the upper line of Bollinger Band at $11,576, which now serves as an initial support level. Once it is out of the way, the downside correction may gain traction and push the price towards $11,000. New buying interest around that handle is expected to stop the sell-off; however, a move below this barrier will open up the way towards $10,400, $10,200 and $10,000.
More so, there are few strong barriers on the way to the North. However, we will need to see a sustainable move above $11,660 on the upside to gain traction. This short-term resistance is created by a confluence of the highest level of the previous hour and the next bull’s target awaits us on approach to $12,200, $12,400 and $12,600. On the hourly chart, the RSI still points upwards; this implies that the short-term trend still remains bullish.
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