As of July 7th, the 20-day exponential moving average (EMA), the 50 day moving average, and the spot Bitcoin prices are all consolidating around the $34,400~34,600 range. Given the low volume, this suggests that the price will continue to stabilize in the 34~35K range before making any big moves.
Historically similar consolidations of EMA-MA-Price datasets have resulted in large price pumps or dumps. If the bulls can break the resistance at 35K, we will be continuing the favorable trend in an attempt to breach 36.5K. We’ve seen an upward trend build up for the last two weeks: breaching 36.5K levels would mean that we can rally towards the 40K+ zones.
The balance will shift in favor of the bears if they can sink the price below the 33K support line, at which point we will likely witness a fall to around 31K. Breach of 29K support could result in panic selling. Unfortunately, 1-day candle charts suggest that a general downward trend is still in effect. We would need to rally upwards for a longer period of time before having the confidence to say that we’re out of the woods.
