Bitcoin (BTC) – Flagging some optimistic signs
Posted on Thursday, July 7 2022 at 9:45 pm GMT+0000
Bitcoin (BTC) has been rising gradually after painting two tiny Doji stars during the last weekend, and lately jumped over the mid-Bollinger band, raising some optimism for a possible turn-up in the price.
The momentum oscillators are reflecting the latest impulses of upwards pressures. The RSI stepped on its 30-oversold threshold and is ramping up to meet its equilibrium line, while the stochastic oscillator is exhibiting a strong positive charge in the bullish region. Moreover, the KST crossed above its simple moving averages and is pushing for additional improvement.
Noteworthy is the squeeze in the Bollinger bands, which is signaling that a surge in volatility is expected, which suggests a larger directional move may soon evolve.
Although all the above raised optimism that the latest rebound could see further continuation. Yet, another challenge needs to be addressed to confirm additional upside developments. Specifically, the price needs to overcome the nearby strengthened resistance zone encompassing the June 26th high of 21,900 and the upper-Bollinger band. If efforts prove successful, the crypto-king may accelerate towards the May 12th bottom at 25,400. Next, eyes will turn towards the 28,000 area.
Downside risks have eased but they have not been eliminated yet, and if the bulls surrender the battle around the aforementioned restrictive zone, the price will slip back towards the most recent low of 17,600, where any violation will further deteriorate the medium-outlook, paving the way straight to the 161.8% Fibonacci extension level of the last up-leg around 15,000. Additional declines could next pause near the 227.2% Fibonacci at 12,100.
In brief, although Bitcoin is showing a gradual improvement, traders may remain a bit cautious until the price successfully pierces above the 21,900 boundary. Failure to escape that crucial bar will raise concerns for a continuation of the medium-term downtrend.
