Bitcoin Analysis – Is the rebound nipped in the bud? – CryptoNews

Dear readers, hello! Here is Romain, for a technical overview of Bitcoin price evolution, still buoyant at the start of the week. What is the main technical support? What targets are on the rebound path? Analysis of the technical situation of the king of cryptocurrencies.

The past week was marked by a technical rebound. And this applies to all markets, stocks and cryptocurrencies. The main explanation remains a return to the attractiveness of risky assets. And buying support when it comes to cryptocurrencies. In addition, the European Central Bank announced an increase in the key rate. For the first time since 2016, when rates remained at 0%…

The current week remains very volatile, the cryptocurrency market also remains under pressure from the Federal Reserve System (US Central Bank). Indeed, this Wednesday there will be a decision on a new rate hike. The consensus calls for an increase of 0.75%. Thus, an announcement directed towards the dollar may slightly push all cryptocurrencies back to June 2022 levels.

Now let’s dive into bitcoin technical analysis.

Bitcoin Weekly Chart: Resistance Holds…

During the previous week, prices have been trying to break through the $23,000 mark, it seems that this resistance is stronger than expected. Indeed, the weekly close was made below this level.

There is no bullish reversal signal at the moment. You have to settle for a price range ranging from $19,500 to $23,000. A weekly close above $23,000 is needed to set the first bullish recovery signal.

Bitcoin – weekly chart

However, it is interesting to note that the weekly RSI has broken out of the oversold zone. This signal means a decrease in selling pressure. Another argument to re-test this $23,000 upper range.

Finally, in the event of an upside rally, $25,000 represented by the weekly Tenkan and $33,000 represented by the weekly Kijun will be the next major resistances identified by the Ichimoku indicator.

Bitcoin Daily Chart: Bounce nipped in the bud?

The previous week was accompanied by strong volumes when exiting the range. However, the weekend did not confirm this breakthrough during retesting. Which scenario to consider?

Bitcoin – daily chart

First, the session on Monday, July 25, was clear: back below $22,000 with a powerful marobosa that broke this support, the former range top, and daily Kijun for the first time.

This break opens the door for a pullback to $20,000 where the lagging range will test the daily Tenkan. Plus, $19,500 is just around the corner.

To nullify this sell signal, prices would need to show strength and return above $22,000. As such, the bounce that started last week could continue with $25,000 available again. It is worth noting that after this first resistance, $28,000 and then $30,000 are the next big bullish targets.

And the total market capitalization in all of this?

The overall capitalization is indicative of this hesitation, which affects not only Bitcoin, but the entire crypto market.

Total capitalization – daily chart

After attempting to break through the daily cloud, the Lagging range did not confirm this rise, as it did not break through the daily Kijun. However, it is this Kijun that carries the prices. If it breaks, a return to the previous medium-term support of $821 billion is very likely. And as a result, the return of bitcoin to the $19,500 zone!

Here too, the reversal will be done by an explicit return in the daily cloud with a daily lagging interval that confirms this signal.

Finally, the daily RSI remains in the 50% zone. In the event of a breakdown, the pressure of sellers can return!

Announcements and results will be important this week and will play a decisive role in the direction of prices in the coming days.

Thanks for following this analysis, see you next week for an update on this situation.

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