Is the Bitcoin Rallly or Break Out Finally here?
By Olivier Acuña | TH3FUS3 Chief Editor
July 29, 2024 08:42 AM
Reading time: 2 minutes, 12 seconds
TL;DR As the monthly close approaches, bitcoin traders are gearing up for a potential rally. Former President Donald Trump's endorsement has boosted confidence. The BTC price remains near $70,000, with bulls eyeing a significant breakout.
Trump's Endorsement Fuels Confidence
No sooner than the former President of the US, Donald Trump, offered his support for Bitcoin at the Bitcoin Conference in Nashville, traders appeared to have become extremely confident about the prospects. This surge in optimism elevated the BTC price close to $70,000.
However, bearish activity was initiated before marking the milestone. Although bulls appear to have been stationed at these levels, they may not exercise extreme strength to reclaim them as the Bitcoin price is at the foothills of a massive explosion.
The Weak $70,000 Resistance
The $70,000 resistance has been feeble since the beginning, as the bulls constantly fail to maintain the levels. As a result, notable pullbacks trigger, dragging the price heavily by over 18% to 20%.
The buyers have fallen weak after elevating the sales to $69,800 during the last trading day. Hence, traders may expect a drop in the pace of the rally.
However, the star token does carry a hidden bullish divergence, which is the key to triggering a strong ascending trend in the future.
Weekly Chart Analysis
The weekly chart of Bitcoin has also come within a bullish range as the price rose above the support, which had turned into a resistance for over a year.
With this, the price is close to entering the pivotal resistance zone, between $69,750 and $71,916. If the bulls make this move possible, the market participants can expect a bullish close for the month at around $70,800 to $71,500.
The bullish perspective remains high as the RSI has surged above the ascending support. However, the formation of the Bollinger bands raises some concerns.
If the bulls fail to break above the zone and continue to accumulate strength, the BTC price could consolidate below $70,000 for a few more weeks until it reaches the apex.
Consolidation and Potential Patterns
The bands are parallel, suggesting the price may continue to consolidate below the resistance zone.
Hence, if the bulls fail to break above the zone and continue to accumulate strength, the BTC price could consolidate below $70,000 for a few more weeks until it reaches the apex.
Another possibility is a plunge to $62,000 or $61,000 and a rebound back to $70,000, which may complete the 'head & shoulder' pattern, triggering a massive upswing after a breakout from the neckline.
The Importance of the Monthly Close
Therefore, the upcoming monthly close could be essential for the Bitcoin price rally, as it will significantly impact the rest of the quarterly trade.
Traders and investors are watching closely, aware that a strong close above the pivotal zone could set the stage for an impressive rally in the coming month. The battle between bulls and bears continues, with the market's future hanging in the balance.