Analyst: if the bulls fail to close the day above the uptrend line, the rally in recent months is over

On Tuesday, July 23, the price of Bitcoin once again dropped below the psychological mark of $ 10,000, forming a bearish divergence with trading volumes on the daily and 12-hour charts. Despite the fact that buyers still manage to keep quotes in the area of this important mark, in the short term, the likelihood of further reduction is quite high, says analyst at CoinDesk Markets Omkar Godbul.

So, according to the analyst, the next likely level of support is $ 9,097 (July 17 minimum).Godboul, however, does not exclude sharp price breaks – the so-called “dead cat throws” – which are characterized by low trading volumes, which in fact leads to the formation of a bearish divergence.  

Note that the Chaikin index of financial flows, which is used for a comprehensive analysis of quotes and volumes, has dropped below 0 for the first time since April, which speaks in favor of bears, indicates Godbul.

At the same time, the 14-day RSI, which is still below 50, is in favor of the downward movement.

We add that the price of Bitcoin fell below the uptrend line connecting the lows of April 1 and May 29.If the day candle in UTC does not close above this line, then the rally from the $ 4,000 mark we have witnessed in recent months can be considered complete, Godboul said.

A breakthrough in high volumes and closing of the daily candle above $ 11,120 can save the situation, the analyst concluded.To do this, on the 4-hour chart, Bitcoin needs to break through the upper limit of the downlink channel [chart on the left].

It is noteworthy that the start of testing deliverable bitcoin futures on the Bakkt platform, which the market had been waiting for so long, had no effect on the price of the first cryptocurrency.

The fundamental negative can be considered news from India, where the working group under the government ministry officially proposed to ban cryptocurrencies and impose harsh penalties for their use.

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