Although Bitcoin showed mixed performance, it managed to stem the losses that had happened during American pre-market trade. Selling spikes remains the most favorable course of action as the cryptocurrency market remains quite unappealing. Although BTC had lost 7.5 percent the day before, it bounced back as the new day, month, and half-year began. BTC/USD increased the price by 3.5% to $20,879 intraday high on Friday during the largely active American session before falling sharply to $18,938 at the time of analysis. The buyers of the Bitcoin dip might have pushed the price upwards. Nevertheless, the price increase might imply more selling. The weekly moving average (MA 200), which is effectively the bottom of all of Bitcoin’s prior negative market cycles, is still above the price despite BTC trading above its most recent 18-month low of $17,584. El Salvador’s President, Nayib Bukele, declared late yesterday evening that the nation purchased the dip for an average cost of $19,000 with an additional 80 BTC added to the public treasury.
Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support Levels: $18,000, $16,000, $12,000
BTC/USD Daily ChartThe $17,588 low level from June 2022 might serve as the first line of defense if selling pressure worsens. If the price didn’t stop there, it would drop to new multi-year lows, and the next significant obstacle would be the $12,500 resistance in August 2020.
Bullish moves may initially run into initial horizontal resistance, which is currently around $22,000 on the upside. The latter’s upward violation might go to the daily moving average (MA 50) around the $26,500 level. Despite the bears, BTC was able to receive support from buyers when it fell below the $20,000 level.
BTC/USD 4-Hour ChartAbove $19,000, BTC/USD is firmly established within a consolidation zone beneath the 4-hour moving average (MA 50). The current low level at $17,567 might prevent further declines. Before dragging the bears any lower toward the $17,567 level attained on June 18, a leg lower could meet the $18,603 support range.
As an alternative, the MA 200 ($24,800) serves as a significant barrier that restricts the upside. A breach of this barrier and the surrounding $25,338 barrier is required to provide a stronger bullish signal for the continuation of the recovery, should one occur. Above these levels, the $30,000 new ceiling may come into focus. In conclusion, the outlook is neutral to negative because prices continue to trade below moving averages.
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