Bitcoin Price: Trends and Highlights for July 3
- BTC/USD is trading inside a descending channel.
- On July 2, it made a bullish hammer.
- There is a slight bearish divergence developing in the short-term RSI.
- The Bitcoin price is facing resistance from the 10-day moving average.
Bitcoin Price in a Descending ChannelSince reaching a high of $12,750 on June 27, the price of BTC has been decreasing — trading inside the descending channel outlined below: After touching the support line on July 2, a very quick upward move began and the price reached the resistance line the next day. At the time of writing, the Bitcoin price was trading right on the resistance line of the channel. If the price does break out, the next resistance area will be found near $12,400. Will the price break out of the channel?
Bullish HammerOn July 2, after decreasing below $10,000, the Bitcoin price began an upward move. The closing price for the day was $10,885, creating a bullish hammer. Today’s candle has so far been bullish. However, it is still contained within the real body of the bearish candle on June 30. As long as it does so, we can still consider the current upward move as a correction in rapport with the prior decreases. This is since the selling pressure which created the bearish candle has not yet dissipated. A close above $12,000 would indicate that we are either in the B wave of an A-B-C correction or that the correction has been completed and the upward trend will continue. A look at the moving averages shows that the price is still struggling to decide the direction of its next move. The recent decrease caused the Bitcoin price to fall below the 10-day MA. However, it found support above the 20-day MA and created the aforementioned bullish hammer. However, it is now facing very close resistance from the 10-day MA. The latter has been flattening recently, but it has not yet dropped to make a bearish cross. Finally, while the recent upward move cannot be ignored, especially since it transpired a lot faster than we expected, it is still isolated within the confines of the descending channel. Therefore, we still believe that the Bitcoin price will eventually complete its evening star pattern.
Reversal AreasWith regard to short-term movement, one support and one resistance area are traced in the graph below. The closest resistance area is found near $12,400. The Bitcoin price would have to break out from the channel in order to reach it. At the current time, we do not believe this to be likely. The closest support area is found near $10,750. It is likely that the price will reach this area, before possibly initiating a weak upward move, as it did on June 30. Afterward, it should continue to decrease at the rate predicted by the channel.
SummaryThe price of BTC has been trading inside a descending channel since. On July 2, it began an upward move and created a bullish hammer. At the time of writing, it was facing resistance from several short- and long-term moving averages. According to our analysis, it should continue to decrease at the rate predicted by the channel. Do you think the Bitcoin price has finished its correction? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.