Turnaround For The Bulls – Crypto Piece
Bears Are Running For The Hills
Bitcoin
The first half of July has been a roller coaster ride for the Crypto market. Bitcoin had a weekly close below the critical $59.7k level, but reclaimed this level the very next week. Thus, there was no confirmation candle on the weekly timeframe (initial candle + at least 1 more candle in that same timeframe), which is very important when looking at major levels. During the pullback, Bitcoin reached as low as $53.5k, which coincided with the support line from the last 2 big downside wicks (as shown in the image below).
Now price has broken above the downtrend line following a daily bullish RSI divergence, which is a typical trend reversal signal.
Price has also now reclaimed the 9, 21 and 55-daily EMA and has also moved back within the range highlighted in orange in the chart below. This deviation shook out the weak hands and has also trapped a lot of shorts. Following some consolidation in the range, we expect Bitcoin to attempt to break the $69k resistance once again. Now the fun begins for the Bulls!
Ethereum
While Bitcoin’s pullback ended up with a lower price than the previous local low, Ethereum held up rather well. ETH revisited the $2850 support level, similar to the last pullback, and has now broken above the downtrend line (similar to earlier this year).
Currently in the support zone between $3300 to $3550, it is important to reclaim this zone to avoid making it into a resistance zone. However, with Ethereum ETF around the corner, we are confident that following some more consolidation, ETH is setting up an attempt to break the $4000 resistance level.
Moreover, if/when ETH breaks above the $4000 resistance level, the last 2 local lows at $2850 will confirm as a double bottom. This price pattern would have target of $5150, which would be a new ATH for Ethereum.
Similar to Bitcoin, Ethereum has also reclaimed its 9, 21 and 55-daily EMAs. All 3 of these moving averages are also beginning to curl up, which is another positive development for the bulls.
In the next section (for Paid Members), we’re going to take a look at some very important aspects:
ETH/BTC ratio
Dollar index – intermarket signal
How do we know that this move in Bitcoin is real? This proof is rather very convincing and something to continue monitoring for assessing risk-on environment
A Bitcoin fractal that you do not want to miss! Gold has already done this type of a structure in the past, so we can get an idea of what to expect
What is the next big upside level for Bitcoin?
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