Since our previous analysis, Bitcoin had succeeded in breaking up the 50-days moving average zone, straight into our next mentioned support area at $10,800, along with the crucial descending trend-line (marked with yellow on the following daily chart).
From there, we saw Bitcoin taking a break to recalculate its next destination. Whether it’s finally breaking the line started forming at the end of June as Bitcoin reached the 2019 high of $13,880, or whether this line will produce another roof for the cryptocurrency.
This is the bigger picture, and chances are equal in my opinion. Some indicators are pointing up while some other – down.
What is for sure is since the Bitcoin dominance had broken above 70% (for the first time since March 2017), the altcoins seem more like a falling-knife than projects competing with Bitcoin.
Total Market Cap: $268 billion
Bitcoin Market Cap: $190 billion
BTC Dominance Index: 70.8%
*Data by CoinGecko
Key Levels to Watch
From the supporting side: The levels of $10,300 – $10,500 had turned into a strong support area. That level contains the 50-days moving average linen. Further below is $10,000 – $10,100 (100-days moving average line), $9700 – $9,800 before reaching the weekly low areas at $9,400 – $9,500.
From above, the major resistance is the $10,800 – $11,000 resistance area, along with the above mentioned yellow descending trend-line. Further above is $11,500 – $11,600 resistance, before reaching the $12,000 zone. However, the $11,000 region is expected to be tough for Bitcoin. That level is the latest high on the daily chart. If Bitcoin wants to continue the parabolic run, it must create a higher high above $11,000.
– Daily chart’s RSI: Here again, Bitcoin had encountered resistance area (54-55 levels). After the healthy move from the lowest zones (since February) at 40, the RSI had surged above, back to the bullish area, where it is currently trading and facing resistance.
– Trading Volume: Despite the nice gains of the past days, the volume hadn’t been showing up yet. If the bulls want to prove they are back, they would need to bring up a higher number of buyers.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
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Source: Crypto Potato