Bitcoin Tech Analysis – Recap and Mid-Day Review – 08/07/19
Bitcoin rose by 1.85% on Sunday. Following on from a 2.56% gain on Saturday, Bitcoin ended the week up 6.34% to $11,485.
On the day, a relatively range-bound morning saw Bitcoin fall to an intraday low $11,110 before finding support. The pullback saw Bitcoin fall through the 23.6% FIB of $11,275 before recovering to $11,300 levels.
A second pullback in the afternoon, saw Bitcoin fall back through the 23.6% FIB before striking an intraday high $11,620.
On the day, while Bitcoin fell short of the major resistance levels, Bitcoin’s move back through the 23.6% FIB was key.
The bullish end to the week contributed to yet another weekly gain and there have been numerous since the start of the year.
Since the start of the year, Bitcoin has seen just 8 weeks in the red, which has given Bitcoin a 200% gain year-to-date.
All of this in spite of a pullback from 26th June’s current year high $13,764.
Bitcoin’s dominance held onto 62% levels. Bitcoin’s market cap has also found support, recovering from sub-$200bn levels on Sunday to $211.17bn at the time of writing.
For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained intact. Bitcoin has continued to find support at the 23.6% FIB of $11,275.
At the time of writing, Bitcoin was up by 3.49% to $11,886.0. Range-bound through the early morning, Bitcoin fell from a start of a day $11,547 to a morning low $11,310 before making a move.
Steering clear of the 23.6% FIB of $11,275 and the first major support level at $11,190, Bitcoin rallied to a late morning high $12,040.
Bitcoin broke through the first major resistance level at $11,700 and second major resistance level at $11,915 to hit $12,000 levels before easing back.
For the Rest of the Day
A hold above the first major resistance level at $11,700 would support another break through the second major resistance level at $11,915.
Bitcoin would need the support of the broader market, however, to break out from the morning high $12,040.
Barring a broad-based crypto rally, Bitcoin would likely come up short of the third major resistance level at $12,425.
In the event of a crypto rally, expect Bitcoin to take a run at $13,000 levels. This morning’s divergence has set the bulls up for a big afternoon if the rest the majors can recover.
Failure to hold above the first major resistance level at $11,700 would see Bitcoin cough up the morning gain.
A pullback through to sub-$11,400 levels would bring the 23.6% FIB of $11,275 into play before any recovery.
Barring a crypto meltdown, we would expect Bitcoin to steer clear of the first major support level at $11,190.
In the event of a meltdown, sub-$11,000 support levels could come into play before any recovery. We would expect the second major support level at $10,895 to limit any downside in the event of a sell-off.
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The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets