A short-term bottom line opportunity in Bitcoin

by James · July 4, 2022

TThe meltdown in the crypto markets may not be over, but the recent easing in the stock markets may offer a short-term opportunity to get back to the leading cryptocurrencies, such as Bitcoin and Ethereum. Over the past 24 hours, the global crypto market margin increased by $ 55.42 billion, or a 36% increase to $ 907.98 billion. The Fear & Greed Index for Bitcoin is 19, at Extreme Fear, which usually indicates a buy option. Bitcoin jumped 6% to $ 20,210 at AEST 13:12 in the last 24 hours, according to Coinbase.

From a technical perspective, bitcoin may continue the recurring momentum in the coming days.

Source: alternative. Me

Bitcoin / USD, daily (valid for 1 week)

Source: Tradingview (Click to see the enlarged chart)

Bitcoin’s downward trend remains intactwith the price moving below the declining trend line by connecting lower peaks from the peak in March (see chart above).

A bullish divergence between market pricing and oscillators provides a short-term bottom opportunity for bitcoin, where market pricing is in a downward trend, but the bottoms on 12 May and 18 June in both the MACD and Stochastic are at the same level in oversold territory. With bitcoin entering a tight movement since the end of June, a rising triangle pattern is forming at the last lowest levels. This also meets the recurring trends of the oscillator, including MACD and Stochastic. Therefore, the short-term directional skew is now skewed to the upsidewith a potential further push up against the highest on June 26 at around 22,000while the imminent resistance is at 20-day MA of approx. 20,300 (the current market price for the editing time). A bullish eruption of resistance at 22,000 will bring the price to further medium-term resistance at 50-day MA around 25,530confluence with the Fibonacci retracement of 23.60% (connects from the highest on March 28 to the lowest on June 30).

However, a bearish eruption of the lowest on June 30 at 19 000 can take bitcoin to reach the previous low on June 18 at 17,567.

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