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Bitcoin (BTC) Price Analysis: More Bullish Confirmation

Bitcoin continues to hover around the resistance of its rising wedge formation and might be due for an upside break. After all, the 100 SMA is starting to cross above the longer-term 200 SMA to signal that the path of least resistance is to the upside.

In other words, resistance is more likely to break than to hold. In that case, bitcoin could be in for a steeper climb, possibly the same height as the rising wedge pattern. This spans $6,000 to around $7,400 so the resulting rally could be at least $1,400 in size.

However, RSI has been near overbought territory for quite some time and may be due to head back down. This could indicate a return in selling pressure and a dip to the wedge support just above the $7,000 handle. Stochastic is also starting to head lower after hitting overbought levels to indicate that buyers are taking a break.

Bitcoin price managed to stay supported on the lack of negative updates from the industry last week. There were also plenty of key developments in other altcoins, keeping cryptocurrency investors in an optimistic mood.

Besides, the move past the technical $7,000 barrier was enough to encourage bulls to stay in the game. Many believe that this could be the chance for bitcoin to resume its strong rebound until the end of the year, possibly hitting record levels or surpassing them.

Still, traders are on edge when it comes to the SEC decision on bitcoin ETF applications since this could be the next big catalyst. Approval could mean stronger volumes and activity for the months ahead, which might spur even more gains for bitcoin and its peers.

At the same time, the improvement in overall market sentiment on account of geopolitical developments also lifted appetite for risk, which was bullish for cryptocurrencies. Troubles in emerging markets also render bitcoin as an alternative means of storing value.

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Bitcoin (BTC) Price Analysis: Another Bearish Break!

Bitcoin recently formed higher lows and found resistance at $6,600 to create an ascending triangle before breaking down. This signals that a downtrend is underway, likely the same height of the formation that spans $800.

The 100 SMA is still above the longer-term 200 SMA, though, so the path of least resistance is to the upside. This suggests that the breakdown could still prove to be a fakeout and bitcoin might still be able to climb back inside the triangle. Then again, price has fallen below both moving averages as an early indication of bearish momentum.

RSI has hit oversold conditions, though, so sellers might need to take a break from here and let buyers take over. Similarly stochastic is heading down but dipping into oversold territory to reflect bearish exhaustion and a possible return in bullish pressure. Price could simply pull back to the broken triangle bottom at $6,400 for a retest before resuming the drop.

Risk appetite appears to be in play in global financial markets so far this week as traders look forward to the talks between the US and China. This has lifted stocks and commodities, likely drawing investors away from cryptocurrencies for the time being. Of course the outcome of the talks could still change all that later in the week.

However, consolidation could also carry on as traders hold out for the SEC decision on the bitcoin ETF applications next month. Any hints on how their ruling might turn out could also push cryptocurrency prices around.

In the absence of any other catalysts, bitcoin traders could also take cues from overall market sentiment, although it’s not clear how it might react to changes in risk appetite. It is helpful to note that bitcoin and some of its peers were able to take advantage of capital controls in Greece a few years back, and the situation in Turkey is looking more or less similar.

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Bitcoin (BTC) Price Analysis: Inverse Head and Shoulders

Bitcoin could be done with its slide as it forms an inverse head and shoulders pattern on its 1-hour time frame. This is seen as a typical reversal signal, so a break past the neckline could confirm that an uptrend is in the cards.

The neckline is around the $6,500 level and the chart pattern is around $800 tall, which suggests that the resulting breakout could be of the same height. The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In addition, the moving averages also appear to be holding as dynamic support levels.

RSI is pointing up to signal that bullish pressure is present while stochastic is also heading higher, so bitcoin could follow suit. However, both oscillators are nearing overbought levels and turning lower could bring selling pressure back in.

Some say that the bounce is merely a short-squeeze from the earlier declines while others say that it was spurred by the pickup in risk appetite. This was seen across the financial markets as US and China are scheduling trade talks for next week, possibly giving enough time to withdraw the latest round of tariffs to take effect by August 23.

Still, the fact that bulls are strongly defending key support levels suggest that a bigger bounce may be in order, and positive catalysts might be needed to sustain any rallies past areas of interest. If those continue to keep gains in check, bitcoin could once again find itself testing those long-term floors around $5,800 to $6,000.

Looking ahead, there are no major catalysts lined up from the cryptocurrency or the US economy. Then again, most of bitcoin’s action is headline-driven or sensitive to overall market sentiment. Also keep in mind that the economic risks in Turkey might also wind up being bullish for bitcoin if the situation worsens.

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Bitcoin (BTC) Price Analysis: Down to the Last Lines of Defense

Bitcoin just can’t seem to catch a break these days as it once again found itself nearing long-term support at $6,000. A break below this region could mean a prolonged decline for the cryptocurrency.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the drop is more likely to persist than to reverse. However, the gap between the moving averages has narrowed to signal weaker bearish momentum.

RSI is also dipping into oversold territory on its move down, suggesting that sellers could soon take a break and allow buyers to take over. Stochastic is also indicating oversold conditions and looks ready to turn higher soon, possibly taking bitcoin along with it.

In that case, bitcoin could recover to the nearby inflection points at the moving averages. It could also revisit the latest highs around $8,500, but it’s also worth noting that lower highs were seen since the beginning of the year.

Many say that the reason for the latest slide was the SEC announcement to delay their decision on bitcoin ETF applications for September. However, this news actually broke out earlier on and it was likely the prevailing FUD (fear, uncertainty, doubt) sentiment that drew more sellers in.

Besides, risk aversion has returned to financial markets on China’s announcement that they would match the latest set of tariffs to be imposed by the US on August 23. This has led to more safe-haven flows and unfortunately, bitcoin has been moving to the tune of risk sentiment as well.

With that, traders dumped riskier holdings like cryptocurrencies and returned to lower-yielding assets in anticipation of more uncertainty for businesses. Traders might hold out until the actual SEC decision on bitcoin ETFs before pushing this coin in a particular direction.

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Bitcoin (BTC) Price Analysis: Wedge Resistance Holding, Support Next?

Bitcoin appears to be blocked at the top of its daily falling wedge formation.

Bitcoin has formed lower highs and lower lows to create a falling wedge pattern on its daily chart. Price is hitting a roadblock at resistance and might be due to test support once more.

The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. Price also came close to testing the 200 SMA dynamic resistance and is tumbling below the 100 SMA dynamic inflection point.

RSI is also heading south so bitcoin might follow suit while sellers remain in control. Stochastic is also heading lower to indicate the presence of selling pressure. Both oscillators have a bit more room to slide but are nearing oversold levels to signal potential exhaustion among sellers and a possible return in bullish pressure later on.

At the same time, the gap between the moving averages is starting to narrow to reflect slower bearish momentum. An upward crossover could bring buyers in and spark an upside break from the wedge resistance. This chart pattern spans $6,000 to around $12,000 so the resulting uptrend could be of the same height.

Bitcoin has had a rough ride in the past few days since it was bogged down by the HitBTC outage and negative remarks from Krugman. South Korea’s plans to tax cryptocurrency exchanges also weighed on prices. Still, some say that this also marks a much-needed pullback from consecutive weekly gains.

Institutional interest remains strong but probably not enough to make it to the headlines these days. Having the spotlight turn back to these kinds of updates could bring more gains for bitcoin and its fellow cryptocurrencies as funds from institutions could bring more liquidity and stronger volumes, likely drawing retail traders to reopen long positions.

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Bitcoin (BTC) Price Analysis: Are Bulls Ready to Charge Again?

Bitcoin has pulled back on its climb over the past couple of days, but seems ready to resume the climb from here. Applying the Fibonacci extension tool shows the next potential upside targets.

The 38.2% extension lines up with the swing high around the $8,500 level but stronger bullish momentum could take bitcoin to the 50% extension at $8,629. From there, a continuation of the uptrend could lead to a test of the 61.8% extension at $8,912 or the 78.6% extension at $9,316. The full extension is located at $9,831.50.

The 100 SMA is still above the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

However, the gap between the moving averages appears to be narrowing, indicating weakening bullish momentum. If this keeps up, bitcoin could be due for a larger pullback to the next area of interest closer to the 200 SMA dynamic inflection point.

This happens to line up with a former resistance level around $6,800 to $7,000 and the rising trend line connecting the lows since June. This might be the line in the sand for a correction, though.

RSI is already pulling up after recently reaching oversold territory, suggesting that bulls are ready to charge again. A bit of bullish divergence can also be seen as price made higher lows while RSI had lower lows since the second week of July.

Stochastic is also turning higher after reaching oversold levels, which means that buyers could take control of bitcoin price action again.

Cryptocurrencies have had a rough start to the week as the catalysts haven’t been exactly positive. For one, HitBTC announced an outage due to hardware problems, sparking fears of a hack even though they assured clients that their funds are safe. This led traders to be more skeptical in reacting to news that South Korean authorities are looking to end tax breaks to cryptocurrency exchanges, which could weigh on activity and profitability.

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Bitcoin (BTC) Price Analysis: Where Bulls Are Waiting

Bitcoin broke below the short-term support levels at the triangle and rising trend line, so bulls might need a larger correction before sustaining the climb. Price is still inside a new ascending channel forming on the 4-hour time frame and a test of support might be in the cards.

This channel bottom lines up with the $6,800 level and former resistance, which might hold as support moving forward. It’s also near the 200 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This confirms that the uptrend is more likely to resume than to reverse. However, bitcoin has tumbled below the 100 SMA dynamic inflection point to signal a bit of bearish pressure.

RSI is also heading lower to signal that sellers have the upper hand, but the oscillator is dipping into oversold territory to reflect exhaustion. Turning back up could bring buyers in, possibly allowing the mid-channel area of interest at $8,000 to hold.

Stochastic is also heading lower so bitcoin might follow suit, but it’s also approaching oversold levels. Turning back up could mean a return in bullish pressure and a bounce back to the channel top around $8,500.

Bitcoin suffered a sharp tumble after it was reported that authorities in South Korea are considering passing legislation to end tax benefits for cryptocurrency exchanges. They pointed to the strong surge in transaction volumes but the potential lack of security capabilities to guard against money laundering and illegal activity financing.

According to Hong Seong-ki, head of the country’s cryptocurrency response team South Services Commission:

While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.

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Bitcoin (BTC) Price Analysis: Is That a Shallow Bearish Channel?

Bitcoin appeared to make a downside break of the consolidation pattern previously highlighted, but bulls rushed in to prop it back up. Price now seems to be forming a shallow bearish channel on the 1-hour time frame as it made lower highs and lower lows.

A test of the resistance is currently happening and a return in selling pressure could take bitcoin back down to the bottom at $7,800. Stochastic looks ready to turn after dipping briefly into overbought territory, indicating that selling pressure is about to return.

RSI, on the other hand, is treading sideways on middle ground to signal further consolidation. This could also keep bitcoin trading slowly inside the channel while waiting for the next set of catalysts.

The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, there’s a chance for an upside break of resistance. However, the gap between the moving averages is narrowing to signal weaker bullish momentum and a potential downward crossover.

If that materializes, bears could return and attempt another break lower. A move below the channel support could be enough to spur a steeper drop to the next longer-term support levels.

A new poll revealed that retail investors are still mostly wary of the risks involved in trading bitcoin. While a significant percentage have expressed interest, the survey by Gallup indicated that only 2% actually own it. In addition, the firm wrote:

“The price of bitcoin is back on an upswing after crashing earlier this year, causing some to say its bubble is again about to burst and others to argue that its value will only accelerate as more merchants inevitably adopt it.”

Others point to the hash rate as showing more bullish signs as it reflects a faster pace growth in the number of miners joining the bitcoin network.

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Bitcoin (BTC) Price Analysis: Potential Pullback Areas

Bitcoin continues to post one strong gain after another, but a correction could be due at current levels. Applying the Fibonacci retracement tool shows the potential support areas where buyers might be waiting.

The 61.8% level lines up with an ascending trend line connecting the lows since last week. This is also around a short-term area of interest at $7,750 and the 100 SMA dynamic inflection point. A shallow correction could find support at the 38.2% Fib just above the $8,000 major psychological mark.

On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This indicates that the rally is more likely to resume than to reverse. However, the gap between the moving averages is narrowing to signal weakening bullish momentum.

At the same time, RSI is turning lower after hitting overbought levels. This suggests that sellers could take over while buyers take a break or book profits off the latest rallies. Similarly stochastic is turning lower from overbought levels to signal a pickup in selling pressure.

Bitcoin has been on a good run so far this week, buoyed by the positive momentum from the earlier week. At that time, institutional interest was seen as the main catalyst for the rebound. This time, markets are focused on the SEC decision on the bitcoin ETF.

Approval could mean more liquidity and higher volumes, which could prove bullish for bitcoin. Then again, the introduction of bitcoin futures last year is also being blamed for the decline in December as it opened the cryptocurrency to short positioning.

For now, risk appetite is also propping bitcoin and its peers higher while traders appear hesitant to put more funds in the dollar. After all, trade-related tensions could escalate anytime and might keep a lid on US growth prospects and Fed tightening plans.

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Bitcoin (BTC) Price Analysis: Another Major Upside Break

Bitcoin seems unstoppable in its climb as it now makes its way above the top of the descending triangle visible on the daily time frame. This chart pattern spans $6,400 to around $12,000 so the resulting rally could be of the same size.

However, the 100 SMA is still below the longer-term 200 SMA on this time frame, so the path of least resistance might remain to the downside. In other words, there’s still a chance for the slide to resume or for bitcoin to fall back inside the triangle pattern.

Price is starting to push past the 100 SMA dynamic inflection point just slightly above the triangle top, though, so bullish momentum is already building up. Bitcoin could make its way up to test the 200 SMA dynamic resistance next, and a break higher could open the floodgates for stronger gains.

RSI is already in the overbought region to signal exhaustion among buyers, and turning back down could bring selling pressure back to the mix. In that case, bitcoin could retest the broken triangle top or move all the way back down to the bottom. Stochastic has reached overbought territory as well, so sellers could take over from here.

Bitcoin has had a strong run at the start of the quarter and again last week, driven partly by a pickup in institutional attention. Many say that this also marks the start of a strong rebound that could last until the end of the year, bringing it to the price targets of at least $20,000.

In addition, billionaire investor and co-founder of Avenue Capital Group predicted that bitcoin price could reach as high as $40,000 over the next couple of years. The recent price surge was enough to catapult it back to the heap, and investors are looking to the SEC decision on the bitcoin ETF fund next.

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