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Analysing the long-term BTC/USD chart from 16th May, we constructed a "roadmap" for Bitcoin's price, resembling an expanding fan consisting of a median and support levels below it, and resistance levels above it.
Reviewing the BTC/USD chart last time (9 thJuly), we noted:
→ Support provided by Support Line 3, reinforced by the psychological level of $55,000;
→ Potential upward movement following consolidation within a narrowing triangle.
How has the market situation changed since last week?
According to today's BTC/USD chart:
→ Bitcoin price has broken upwards from the consolidation triangle (shown in orange);
→ Over the last 3 days, the price has increased by almost 8%;
→ BTC/USD exchange rate is again above the psychological mark of $60k.
Among the bullish drivers identified:
→ The weakening US Dollar amid slowing inflation and high expectations of a Fed rate cut as early as September;
→ Inflows of investments related to Bitcoin ETFs reaching $300 million per day (as mentioned in our previous post);
→ Price growth observed following news on 13th July about an attempt on Trump during a rally in Pennsylvania. It's possible Bitcoin is seen as a safe haven amidst political turbulence.
By the way, while a Republican candidate previously criticised Bitcoin as "fraud," on 14th June, Trump stated he would end the "war on cryptocurrencies" if elected president, a stance confirmed by organisers of the Bitcoin conference in Nashville (scheduled for 25-27 July) who announced Trump's agreement to speak there.
How will events unfold further?
Technical analysis of the BTC/USD chart shows:
→ The price is near Support 2. Despite its name (given back in May), this line, after a bearish breakthrough in early July, may now serve as resistance;
→ Additional resistance at the level of 63,600 could also serve as a test of bullish confidence.
Thus, encountering these two resistances after a 8% rise over 3 days, a correction phase in Bitcoin's price chart development may seem like a plausible scenario.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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