It is my current belief that the current upwards price action is caused, not by bullish momentum, but by a temporary short squeeze. With other global markets rallying, it was inevitable that BTC would follow suit. If global markets fail to continue rising, BTC will mirror this.
If bitcoin was truly breaking out to start the next great bull cycle, there would be substantial volume confirmation. Unfortunately, volume is still low, especially compared to volatility from several months ago.
BTC has entered a bearish ascending wedge, which will most likely cause a break to the downaide withing the upcoming days. Expect resistance around 9750-9800 to slow upward price movement. This is the location of a previous high.
Looking at the 1D chart, the ichimoku cloud, which has been green since 11May2020, will flip red this upcoming Monday (27July2020). Expect BTC to gravitate towards that cloud. On a larger time scale, BTC could still revisit the 7000s level before resuming its uptrend.
TLDR:
volume is low
price action due to short squeeze
bearish ascending wedge
resistance around 9750
many traders expect pullback to 7ks
If bitcoin was truly breaking out to start the next great bull cycle, there would be substantial volume confirmation. Unfortunately, volume is still low, especially compared to volatility from several months ago.
BTC has entered a bearish ascending wedge, which will most likely cause a break to the downaide withing the upcoming days. Expect resistance around 9750-9800 to slow upward price movement. This is the location of a previous high.
Looking at the 1D chart, the ichimoku cloud, which has been green since 11May2020, will flip red this upcoming Monday (27July2020). Expect BTC to gravitate towards that cloud. On a larger time scale, BTC could still revisit the 7000s level before resuming its uptrend.
TLDR:
volume is low
price action due to short squeeze
bearish ascending wedge
resistance around 9750
many traders expect pullback to 7ks