As the Bitcoin (BTC) chart steams toward the July candle close, the leading crypto remains in a likely short term downtrend, but is still holding roughly at the $9,500 area. As covered yesterday, there is still a decent likelihood that this level will soon be lost.
On the daily chart, there is little change from yesterday’s flat performance. No bounce came after the prior day’s hopeful hammer-looking candle. Volume continues to mostly fall, and yesterday’s price action did not even get to retest the 9-day exponential moving average (EMA).
It is also notable that the previous uptrending support, the red band, has also been lost and turned resistance. A slight uptick on the histogram is really the only indication of any possible strength, but taken on its own it is not worth much.
Getting down into the weeds, on the 4-hour chart, we see a bull divergence on the RSI. Although price seems likely to dip a bit lower on the medium timeframe, this divergence may be good for a short term trade.
If a small bounce does come here, we would look to the 55 EMA for resistance, which falls directly within the aforementioned diagonal resistance (previously support). Overall, the very tepid volume paints a picture of a summer malaise.
New Video – The Bitcoin Death Cross Explained
How does the death-cross impact price action of $BTC?
How low will the price go?
In this short video, I explain the death cross and what we should expect with price in the next few weekshttps://t.co/dZ1ti9xOUH
— Josh Rager 📈 (@Josh_Rager) July 28, 2019
Taking a giant leap back to the monthly chart, in anticipation of the monthly candle closing, we see a mixed picture. The tweezer top pair of candles definitely look ominous, being a classic sign of reversal. However, this month’s candle body is nowhere near engulfing the previous month’s, softening this bearish indicator.
We can see a clear area of support drawn between monthly closes from 2018-19, in the high- to mid-$8,000 area. July also saw the highest volume of 2019 on this exchange (Coinbase), and this is repeated across several other high profile exchanges. Because of the small candle body, we can say that plenty of this volume was buy volume.
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