After having dropped to the sub 30K mark over the past few days, it seems that the Bitcoin price is gearing for a massive move upwards. After reaching a bottom of $29600 on 20 July, Bitcoin has been in the ascendant to the $33775 mark which represents a rise of 10%.
The Bitcoin price has risen above the $33K mark and now is looking for a daily close above the $34K level to consolidate its gains. The next resistance level is expected to be the $36000 mark which should not be all that difficult to attain. If you haven’t bought BTC yet then it would be useful to take a look at this How To Buy Cryptocurrency Beginner’s Guide.
Short Term Forecast For Bitcoin Price: Onwards and Upwards
After having closed above the 200 SMA of $32770, the Bitcoin price seems to be poised for further gains all the way up to the $42000 level. Still there are several resistance points that may be encountered across the way.
The first will be the 10-week SMA at $34,900. This could represent one of the biggest challenges for the Bitcoin price as it has not closed above the moving average since early May. If the $34,900 mark is exceeded then BTC will likely test the $42000 mark reached on June 15 as well as the January high at a similar level.
The next resistance point should be the $42600 mark which would be a rise of 38% from the current price. One must remain patient for this rally to gather steam as the resistance levels seem to be very strong. Turnover is also extremely low and back to January levels.
A market sell off and a bearish thesis could undermine all these slow gains however. If this occurs, the Bitcoin price is required to hold the support line of $27725 as well as the 62% retracement level of $27175. If these support lines break, then a descent to the $19,900 level could be on the cards. This price was last seen in December 2020.
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Long Term Forecast For BTC: A Reversal Or A Capitulation?
As already indicated, the Bitcoin price seems to be poised for a rebound as the price stutters above the $33K levels. It is looking more likely that the $36K mark will be the next resistance line. However, a sell-off could ruin all best laid plans.
There also appear to be negative or neutral funding rates over the past two months. Investors are continuously building short positions which is rather strange considering the very marginal new lows since May 18. A buying stampede could occur with the shorters looking to cover their positions and which eventually pushes the Bitcoin price higher.
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Gerald Fenech
