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Bitcoin short-term price analysis: July 05

Akash Girimath

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Will Bitcoin CME gap at $9,665 be filled?
Source: Unsplash

Bitcoin underwent a bearish pattern that pushed its price from $9,216 below $9,000 for a brief moment. As the coin moves sideways on support at $9,016, the tussle between the bears and bulls continues. At press time, the market cap of bitcoin exceeded $165 billion and has a $12.5 billion 24-hour trading volume.

Bitcoin One-Hour Chart

BTCUSD TradingView

With price breaching the rising wedge pattern, next levels of support include $8,900 and $8,808; the former is extremely important. The $8,900 support, if breached, would enable the continuation of the lower lows. The closing of the price below $8,900 would be the third lower low in a month.

Supporting this would be the RSI, which has done a 180 as it neared the 50-level. As the price hovers below 50-DMA [yellow] the final destination would be 200-DMA [purple] $8,379, assuming the bearish trend continues.

Bitcoin Weekly Chart

BTCUSD TradingView

On the weekly chart, Bitcoin has seen 3 consecutive lower closes, which signifies a bearish downtrend. The last time this happened was before the Black Thursday drop. Furthermore, the price is stuck between the 5 weekly moving average and the 21 WMA. RSI on the weekly time frame showed a descent towards the neutral zone since mid-April. For RSI, the 46.20 represents serious support that has not been breached since early March.

An important takeaway from the weekly chart is that every time the price sees 3 weekly consecutive lower closes, there is a massive price drop on the third candle or the subsequent candle. The 21 WMA and the 200 DMA coincide at price $8,380, which makes it strong support and a good place for the price to bounce and start a rally.

As mentioned in the previous article, the bull run is just around the corner, however, the price’s tussle with the $10,500 level has made it impossible so far. Hence, a bounce from $8,300 would gather enough momentum for the price to push through this level and start the bull run.


Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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