Bitcoin Price Analysis (BTC) – July 19
Bitcoin has now been declared a virtual property legally recognized by a Chinese court. Bitcoin has the characteristics to be considered a virtual property and therefore owning Bitcoin will be legal in China. Is that why BTC is rising?
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $13,500, $14,000 $14,500
Support Levels: $8,000, $7,500, $7,000
Bitcoin has increased more than 8% over the past 24 hours to $10,500 at the time of writing. The first digital cryptocurrency was linked to the early hours of Asia, thus consolidating the gains of the previous session. A sustained movement of more than $10,000 has improved the technical situation in the long term; however, the critical amount of $11,000 will not be interrupted at this time. The market price is evolving above the 50-day MA and this could give Bitcoin a boost of over $10,800.
Furthermore, the daily chart shows $10,000 as being a viable support level. As long as BTC stays above $10,000, a correction towards $11,000 is possible and after hitting it, the price may likely visit the next resistance levels at $13,500, $14,000 and $14,500. Other key support levels to look out for are $8,000, $7,500 and the primary support at $7,000. The MACD is sitting comfortably in the positive region while the decreasing negative divergence suggests that the bulls are gaining traction.
BTC/USD Medium-term Trend: Bullish (4H Chart)
According to the 4-hour chart, with the sudden move of Bitcoin price above $10,000, Bitcoin’s chances of violating the old support of $9,075 (the highest on May 30) became resistance, weakened. That said, the bulls are not out of the wood yet and a break above $11,000 is needed to invalidate the bearish case.
In addition, a high-volume break above $10,815 would violate the bearish pattern of the highs and shift the risk to a rise of $12,000 and above. In particular, the movement above $10,000 is supported by an increase in buying volumes (the pink arrow). As a result, prices could reach $11,000 in the next 24 hours and it’s been supported by $8,700 level and below.
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