Bitcoin price had been on a downward correction from the high of $13,000 to $10,982. What next can we expect should the downward trend continue? The following technical analysis reveals.
BTCUSD Price Chart
Yesterday, July 4, Bitcoin (BTC) price was retracing after the bulls were resisted at the $12,000 level. This resulted in a downward correction to a low at $10,982. Bitcoin price dropped below the 12-day and the 26-day Exponential Moving Averages (EMAs). From our trend line tool assumption, the current trend has been terminated. The trend line was broken by price, followed by a confirmation candlestick. Retrospectively, Bitcoin price had been on a downward correction from the high of $13,000 to $10,982.
Today, July 5, the price of Bitcoin is trading below the 12-day and the 26-day EMAs, indicating that price is likely to decline. On the Upside, if BTC bulls break the EMAs, the price will climb to retest the $12,000 resistance level. On the other hand, if the downtrend continues, the price will find support at the $9,750 price level. In the meantime, the Moving Average Convergence Divergence (MACD) line and the signal line are above the zero line, which suggests a buy signal.
BTCUSD Price Chart
Looking at the 1-hour chart, BTCUSD price is in a bearish trend as the 12-day and the 26-day EMAs are sloping downward. BTCUSD price is facing resistance at the $12,000 price level. Yesterday, BTC bulls were resisted at this same price level. As a result. the price of BTC dropped to the support of the EMAs to started a range bound movement above it. Nevertheless, the bears have already broken below the EMAs. In the meantime, the MACD line and the signal line are below the zero line. This is an indication of a buy signal.
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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