Bitcoin price hits $34K as trader forecasts fresh weekend resistance showdown

Bitcoin (BTC) touched $34,000 on July 24 after the latest resistance flip held to propel the market higher.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin battles $34,000Data from Cointelegraph Markets Pro and TradingView showed BTC/USD just hitting the $34,000 on Bitstamp on Saturday before returning to linger around $200 lower.The past 24 hours were profitable for traders as Bitcoin launched from $32,000 to deliver 4% gains that were holding above $33,800 at the time of writing. For Cointelegraph contributor Michaël van de Poppe, it was necessary for the strength to continue and for $32,500 to hold in the event of a retracement.”Bitcoin breaks through that resistance at $32.5-$32.7K. Holding that for support = likely continuation towards $36K,” he forecast in a Twitter update. “Overall, the next resistance at $34.5K is possibly being reached during the weekend.”Such behavior would not be at all surprising given the wide trading range in which BTC/USD is currently acting — $42,000, the point of all-time highs from February, remains the range ceiling and line in the sand for a definitive bull market continuation.Fellow trader and analyst Rekt Capital meanwhile highlighted ongoing changes with the 50-week exponential moving average (EMA) as a sign of longer-timeframe bullishness returning.Last week, #BTC broke down from the triangular market structure that was formed by the 21-week EMA resistance & the 50-week EMA supportToday, $BTC is just above the 50 EMA, trying to reclaim it as supportWeekly Close above the 50 EMA will confirm the reclaim#Crypto #Bitcoin pic.twitter.com/fsDm4hrK4C— Rekt Capital (@rektcapital) July 24, 2021On the more cautious side, as Cointelegraph reported, $24,000 projections remain should Bitcoin reverse, with one trader eyeing a CME futures gap nearby as possible support.”We see support at the $22k and 24k level should there be a breakdown below the current support level,” trading suite Decentrader added in a fresh market update on Friday.Ethereum “confirming” breakoutAltcoins meanwhile slowed the pace of their own gains but nontheless retained impressive performance over the week.Related: Just HODL! Bitcoin and Ethereum outperform ‘lower risk’ crypto index fundsWith many of the top fifty cryptocurrencies by market cap seeing weekly returns of 10% or more, confidence was returning to the market.Ether (ETH), the largest altcoin, traded back above $2,000, hitting ten-day highs.ETH/USD 1-day candle chart (Bitstamp). Source: TradingView”So far, so good towards confirming a breakout here,” Rekt Capital said about ETH/USD performance.

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Bitcoin price hints at 'megaphone' bottom pattern, and a breakout toward $40K

Bitcoin’s (BTC) latest rebound from below $30,000 has increased its prospects of extending its retracement move higher, at least according to one classic technical pattern.Dubbed as Broadening Formation, the megaphone-shaped pattern appears when the price moves inside two diverging trendlines. Investopedia states that a broadening formation represents disagreement over the next potential bias among investors. As a result, the price forms higher interim peaks and lower interim lows.Bitcoin appears to be trading inside a similar structure, as shown in the chart below. Nonetheless, the cryptocurrency lacks volatility, one of the key features of the broadening formation pattern.Stabilized Bollinger bands reflect limited price volatility in the Bitcoin market. Source: TradingView.comShould the pattern play out, the Bitcoin price will undergo a bullish breakout above the structure’s upper trendline. In doing so, it would expect to rise by as much as the maximum height between the broadening formation’s upper and lower trendline. The upside setup appears because traders interpret broadening formation as a trend reversal pattern.ive been here before, and if your new to the megaphone bottom pattern then here you go ;-)…and yes our #tbts #scriptA scooped up this price here$btc $btcusd #bitcoin #crypto #cryptocurrency #xbt #xbtusd #btcusdt #btcusdc https://t.co/b9D6MzoKlE pic.twitter.com/nufz9dYDMf— TBTS – The Best Trading Scripts (@CrytOcaine) June 21, 2021But until then, the pattern offers swing trading opportunities to daytraders, i.e., a bounce from the lower trendline tends to present Long opportunities toward the upper trendline, and a pullback from the upper trendline could have traders open short positions toward the lower one. Again, the Bitcoin price volatility is lower enough to invalidate such intra-range setups.Falling channelThe most interim resistance level is near the dashed trendline in the Bitcoin chart below.Bitcoin falling channel setup limits bullish broadening formation’s upside outlook. Source: TradingView.comA close above the dashed trendline expects to have Bitcoin test $35,00 as its next resistance target. On an extended move higher, the potential to hit $40,000 is higher based on the cryptocurrency’s recent price patterns.Conversely, a pullback from the dashed trendline tends to validate a Falling Channel pattern. On the other hand, Bitcoin could retrace its steps lower towards the so-called Broadening Wedge’s support trendline (next downside target near $28,500).Bitcoin price fundamentalsThe conflicting Bitcoin setups emerge as bulls continue to defend $30,000 as support while bears enjoy control over the $34,000-$35,000 area. Unfortunately, that has landed BTC price inside a constrained trading range, giving no interim clues about where it wants to head next.Fundamentals have played a key role in trapping Bitcoin prices. To the upside, inflationary pressures from the traditional finance sector have provided tailwinds to Bitcoin’s safe-haven narrative. Meanwhile, the downside is an increasingly global regulatory discontent toward the cryptocurrency sector.Related: SEC Chairman says cryptocurrency falls under security-based swaps rulesIn the last two months, the market has witnessed China banning cryptocurrency trading, India raiding regional crypto exchange WazirX, and the U.K. banning Binance’s subsidiary from operating regulated businesses. In addition, Japan and Hong Kong also issued warnings and restrictions against Binance.[embedded content]Earlier this week, the U.S. state authorities closed crypto company BlockFi’s accounts, alleging that the startup sold unregistered securities. The sector also received criticism for increasing carbon footprints via mining, which requires heavy computational power to run blockchains.”As long as global regulation of cryptocurrencies is not eased, or a resolution is met, I believe it is difficult to gain public trust, and for Bitcoin to scale the heights it reached in early 2021,” Adam Todd, Founder, and CEO of Digitex, told Cointelegraph.JG Collins, head of the Stuyvesant Square Consultancy, also wrote in his Seeking Alpha op-ed that “national economics regulators, state environmental regulators, and municipalities troubled by “mining” raising local electrical rates will sweep cryptos away like a tsunami.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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