Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation.
Within the first few days of July, Bitcoin [BTC] traded at a low of $18.8k. Previously two weeks, and particularly the previous week, Bitcoin has posted regular beneficial properties.
Bitcoin confronted some resistance on the $24.2k, with additional resistance forward on the $26.7k-$27.1k space. The USDT dominance chart reached an space of assist and appeared prone to bounce.
Such a bounce could be indicative of promoting strain throughout the market, and market members growing their USDT holdings. Information of Tesla promoting 75% of their BTC holdings additionally affected the market bearishly in latest hours.
BTC- 1-Day Chart
Supply: BTC/USDT on TradingView
The long-term value chart confirmed a decisive downtrend for Bitcoin since December 2021. Bitcoin had shaped a year-long vary from $29.5k to $65k. In June, the worth cratered beneath the vary lows.
Though the previous week noticed a powerful Bitcoin rally that broke the decrease highs at $23k and $22k, the development was not but firmly bullish. Much more choppiness could possibly be across the nook, which meant dangerous buying and selling circumstances.
But, it have to be underlined that the break of the decrease highs meant Bitcoin has a bullish construction and will rally increased, offered it might probably defend the $22k space. Therefore, this zone could be one to be careful for.
Rationale
Supply: BTC/USDT on TradingView
The Relative Energy Index (RSI) pushed above the impartial 50 line and previous 60 as properly, earlier than a retreat. This confirmed that momentum may have shifted in favor of the bulls on the every day timeframe.
This additionally tied in with the market construction break. If the RSI managed to remain above impartial 50 and BTC can defend the $22k-$22.3k space, it was potential that the worth would climb increased.
The On-Steadiness Quantity (OBV) has been in a gentle downtrend since April. The rally of the previous two weeks solely introduced the OBV to a resistance degree. This was not encouraging, because the OBV wanted to interrupt increased to point regular demand and an upward extra.
The Directional Motion Index (DMI) confirmed a robust uptrend in progress, a response to the rally of the previous two weeks. The ADX (yellow) and +DI (inexperienced) had been above the 20 mark.
Conclusion
The indications lag behind value however confirmed bullish momentum.
Shopping for quantity was not but overwhelming, and the break in OBV resistance could be a welcome sight for the consumers. The $22k-$22.3k was essential assist, and if defended, one other leg increased may materialize.