BTC/USD: Identifying Key Areas of Interest 1H (Jul. 28)

X Force Global Analysis:


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Bitcoin has shown an immense rally, leading up to test 11.4k at a glance. In this analysis, we take a look at Bitcoin's hourly chart to assess key areas of support and resistance.

Analysis

- We have seen Bitcoin form an Elliott Impulse wave (12345) on its way up, forming a parabolic trend
- Prices are trading above major indicators of support: the 20 Simple Moving Average (SMA), 50 SMA, and the Ichimoku Cloud
- After having topped out at 11.4k levels, prices are trading between the 0.786 Fibonacci resistance and 0.382 support at 11.3k and 11k
- The Moving Average Convergence Divergence (MACD) shows decreasing bullish histograms, and a potential dead cross in play

Market Sentiment:

Long short ratios are at 67 to 33, with long positions having decreased over the past few hours. After its bullish rally, it seems as though traders have taken profits on their long positions. Regardless, the market sentiment remains bullish.


What We Believe

We believe that it's imperative to identify the key areas of support and resistance stated above for further confirmations of potential trend reversals. For the immediate term, it seems as though Bitcoin's bullish momentum may have topped off.

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