BTC/USD Medium-term Trend: Bullish
Resistance Levels: $6,400, $6,600, $6,800
Support levels: $6,000, $5,800, $5,600
Yesterday, June 25, price of Bitcoin closed at a price of $ 6,244.12, after the cryptoasset fell to the low of $5,820.39. If the bulls will keep on the momentum, the price of Bitcoin is expected to rise to reach the highs of $7,000 and $7,700. If the cryptoasset rises, I suggest long trades should be initiated.
For this purpose, a Fibonacci tool had been attached for analysis. The principle behind the tool is that in an uptrend if price retraces from the recent high, it will find support on one of Fib. retracement levels where traders can initiate long trades. From the chart, the price of Bitcoin is retracing from the recent high to one of these Fibonacci levels.
We will initiate a long trade when one of these bearish candlesticks closes on the Fib. level. Then we put our stop loss at our previous low at $5,900. Meanwhile, as the price of Bitcoin is retracing, the MACD line and the signal line are below the zero line indicating a sell signal. However, relative strength index period 14 is level 49 which indicates that price of Bitcoin is in the range bound zone.
BTC/USD Short-term Trend: Bullish
On the 1-hour chart, the price of Bitcoin is retracing to one of the Fibonacci retracement levels. Whereas the MACD line and the signal line are above the zero line indicating a buy signal. However, if the Bulls failed to go beyond $6,400, then our bullish view will be invalidated.
The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research