Bitcoin (BTC) has been in a vicious chop zone all during July, and this week is so far no exception.
Starting with the weekly candle, the picture is not exactly clear. We see that last week’s hammer candle closing - a bullish closing - has not materialized this week into further gains. Instead, the week looks bearish as this week’s candle is engulfing the prior week’s - but the week is not over, and support has come in at the 9-week exponential moving average (EMA).
Moving to the 3-day, we see strong support at $9,666, and at the 21 EMA. It is a chop, and volume is dropping off suggesting a consolidation. We can see price uptrending here, and we could get a consolidation in the range between here and $10,700.
Moving to the daily chart, we get a better view of what may be a short term trend reversal from down to up. The 55-day EMA was lost on yesterday’s close, and closing today or tomorrow above that would be a good initial target for spotting a bounce. Yesterday saw falling sell volume, and a nice bull wick has formed so far today - having the makings of either a hammer, doji, or spinning top.
Zooming into the daily MACD chart, we note that today’s bar is - so far - clearly showing an arc up. If today’s histogram were to close in this aspect, our 3-bar formation would clearly suggest a reversal up.
On the 6-hour chart, we see - not a lot. No real signs of reversal or strength coming in, excepting perhaps a flattening histogram arc - here resembling the daily histogram. Bitcoin is holding in the uptrend, but not really telling us why.
Finally, getting very cute on the 2-hour, and desperate for signs of strength, we again find very few. We do not see the RSI diverging favorably from price, although we do see some bull divergence on the histogram. We see volume falling and price held under the moving averages.
To sum up, the main question in the short term is, will the present uptrend line hold, and carry Bitcoin back above $10,000 for another round of chop and/or consolidation? So far, the answer seems to be yes - but more confirmation is needed.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.