Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
Bitcoin is holding strong and battling a strong overhead resistance at $11,500. In the most recent price analysis published on 1 June 2020, the 55 MA was highlighted as a potential support level, which held and BTC pushed through the resistance order-block spanning $10,150 and $10,350. BTC is trending at $11,750 at the time of writing this analysis and remains resilient on monthly and weekly time frames. Let’s dive into the price action and what different timeframes are suggesting.
Monthly:
The outlook on the monthly time-frame is strong with July 2020 closed at $11,356.74 on Bitstamp. This close is above the order-block which had been a strong resistance block since June 2019. The close above $10,100 – $10,750 block after more than a year is very positive for BTC and must act as a support in case price dips at that level. There is only one overhead resistance left at $14,000 and a monthly close above $14,000 could propel BTC to break above the previous all-time high of $20,000.
The chart below explains what is being mentioned above:
Weekly:
After hovering just above the 55 MA for 11 consecutive weeks, BTC finally broke above and ripped through the overhead resistance at $10,350. BTC is currently struggling against the resistance line at $11,500. A significant-close above $11,500 ($500-1,000) could signal possible upsides in the upcoming weeks. A weekly close above the $11,500 and sustained for the next 2-3 weeks could be very positive for BTC since it is the previous high in June 2019. Next resistance lines are highlighted in red on the chart $13,750, $16,250, followed by a strong and final resistance line before the previous all-time high is $19,000.
Conclusion:
BTC finally broke above the psychological resistance of $10,000 after spending almost 8 months under and after multiple failed attempts. This is significant for BTC, the current price action suggests upsides in the upcoming weeks and months. However, a crash in the traditional financial markets could be negative for BTC too. The outlook of the traditional financial market is something that a Bitcoin investor should be careful about.
Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
