In brief:
- Bitcoin has broken the important $9,300 resistance level.
- The swift move by Bitcoin from around $9,150 to $9,350 has brought back much-needed volatility.
- Crypto Twitter has welcomed the move up by Bitcoin.
- BTC still has the usual resistances of $9,600 and $9,800 before retesting $10,000.
Earlier today, Bitcoin (BTC) brought back much-needed volatility to the crypto markets through a $200 move. Around midnight UTC, Bitcoin was trading at the comfortable support level of $9,150. A few hours later, the same Bitcoin spiked by the aforementioned $200 to a value of $9,350. The King of Crypto is now trading at $9,335 – Binance Rate – and looks set to maintain $9,300 as its new support level.
Crypto Twitter Celebrates the $200 Move by Bitcoin
The $200 move by Bitcoin might seem small compared to other times in the crypto markets, but this move brings much-needed volatility to BTC. This move breaks away from the monotonous sideways movement that has plagued Bitcoin since the last week of June. The return of Bitcoin’s volatility has been celebrated by many crypto traders and investors as seen through the following Tweets by Bitmex’s Arthur Hayes and Binance’s CZ.
#bitcoin awaken from thee slumber. I’m getting fucking bored. pic.twitter.com/jUC46MOU46
— Arthur Hayes (@CryptoHayes) July 21, 2020
I have never seen this much excitement for such a little move by #BTC? 😆 In the good old days…
— CZ 🔶 Binance (@cz_binance) July 21, 2020
What Next for Bitcoin in the Crypto Markets?
The move up by Bitcoin breaks the earlier identified falling wedge on the 6-hour BTC/USDT chart. This wedge has resolved ahead of time and Bitcoin’s push up still faces the familiar resistances at $9,600 and $9,800.
Additionally, in between these macro levels of resistances, lies less demanding resistance levels at $50 intervals. They include $9,350, $9,400, $9,450, $9,500, $9,550, $9,650, $9,700, $9,750, $9,850, $9,900 and $9,950.
Revisiting the 6-hour Bitcoin chart courtesy of Tradingview, the following can be observed.
- Bitcoin has walked away from the earlier mentioned descending wedge.
- Trade volume is in the green and the 6-hour MACD exhibits bullishness.
- MFI is at 63 thus providing fuel for an additional push up for Bitcoin.
- Bitcoin’s current price at $9,335 is above both the 50 and 100 moving averages on the 6-hour chart.
- The 200 MA on the 6-hour time frame, remains as a resistance level around the earlier mentioned $9,350 price zone.
Conclusion
Summing it up, Bitcoin has pushed and broken the $9,300 resistance level via a very much welcomed $200 move. The move by Bitcoin has brought back much-needed hope that volatility has returned in the crypto markets. However, Bitcoin still faces the usual resistance levels at $9,600 and $9,800 as it attempts to retest $10,000.
As with all analyses of Bitcoin, traders and investors are advised to use adequate stop losses and low leverage during uncertain times.