Bitcoin traders expect a ‘push higher’ after several metrics turn bullish
2024.07.18 15:12
According to analysts, Bitcoin has shown a number of bullish signals on multiple timeframes, suggesting that the “push higher continues” following a 10% rally over seven days.
Despite the recent drawdown, which saw Bitcoin’s (BTC) price lose 16% of its value between July 1 and July 5, setting a low at $53,499, “Bitcoin has rallied ~21%,” Glassnode co-founders Negentropic wrote in a July 18 X post.
They were referring to Bitcoin’s meteoric rise over the weekend, which reached a high of $66,139 on July 17.
Negentropic highlighted that the rally has seen the price of the pioneer cryptocurrency flip several levels into support, including the 200-day exponential moving average (EMA) currently at $58,448 and the $62,600 area embraced by both the 50-day and 100-day EMA.
The analysts said that they remain bullish as they set their eyes on the “next likely level of 69K before 74K and onward.”
“BTC’s push higher continues!”
BTC/USD daily chart. Source: Negentropic
Negentropic also observed that the daily relative strength index (RSI) “broke the downside momentum after a bullish divergence,” which suggested strength among buyers.
Analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” made similar observations on lower time frames, saying that the four-hour RSI signals a clue as to where the market would head next.
Source: The Wolf Of All Streets
Analysing the Bitcoin historical index, anonymous analyst Moustache was optimistic of further upside after BTC price produced a bullish cross on the monthly time frame.
“It’s been almost 8 years since $BTC last saw this bullish cross,” Moustache declared in a July 18 post on X, adding that it was followed by the 2017 bull run. This suggested that if the bullish cross holds, Bitcoin could lead the rest of the market in a parabolic uptrend.
“Do what you want with the information, I’m just saying it happened again”
BTC/USD historical index. Source: Moustache
Related: Bitcoin price hits bull market trendline that last sparked 30% gains
Bitcoin establishes support around $64,000
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin price trading at $63,498, after being rejected from the $65,000.
After reaching $66,000 on July 17, BTC price recoiled back below $65,000 and retested this level for most of July 18 before dropping lower.
Chartered market technician Aksel Kibar said, $65,000 was acting as a “strong resistance,” and the fact that the BTC/USD pair is not significantly “backing from it” is “very bullish long-term. ”
“Sticking to a resistance and no intention of selling off is usually a sign of a pending breakout.”
Source: Aksel Kibar
Data from IntoTheBlock supported Bitcoin’s upside with the In/Out of the Money Around Price (IOMAP) model showing that Bitcoin price enjoyed relatively strong support on the downside, compared to the resistance it faced in its recovery path.
For example, the immediate support provided by the 100-day and 200-day EMAs around $62,700 is close to the zone where approximately 840,920 BTC were previously bought by 1.7 million addresses. Increased demand from this zone is likely to push the price higher.
Bitcoin IOMAP chart. Source: IntoTheBlock
This suggested that the path with the least resistance for Bitcoin is upward.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
