Bitcoin Price Retakes $10K But Remains Short of Bull Revival

Omkar Godbole
Jul 25, 2019 at 11:00 UTC
Updated Jul 25, 2019 at 11:06 UTC
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  • Bitcoin has again charted a recovery to above $10,000, but the outlook remains bearish with the lower-highs pattern intact.
  • The recent gains may be short-lived, as the recovery seen in the last 24 hours is stuck at key resistance levels and lacks volume.
  • A UTC close above $11,120 is needed to revive the bullish view. That level could come into play if BTC clears key resistances around $10,200 on high volumes.

Bitcoin is back above $10,000, but the technical charts indicate a bull revival is still $1,000 away.

The premier cryptocurrency by market value is currently trading at $10,150 on Bitstamp, having hit a low of $9,514 yesterday. This is the third time in a month that BTC has charted a quick recovery back into five figures.

Prices bounced off the former-resistance-turned support of $9,097 on July 17 and climbed back above $10,000 the following day. Before that, BTC printed a low of $9,614 on July 2 only to close well above $10,000 the same day.

On both occasions, BTC carved out lower highs – a bearish pattern – at $11,120 and $13,200, respectively.

The latest bounce may have caught some investors off guard, as BTC was on slippery grounds 24-hours ago after breaching long-term trendline support on Tuesday.

Despite the rise, the outlook remains bearish, as the lower-highs pattern is still intact. BTC needs to rally by $1,000 and beat resistance at $11,120 to invalidate lower highs and revive the bullish view.

That said, BTC may have a tough time rising above $11,120 as key resistances are currently capping upside.

Daily and 12-hour charts

BTC is struggling to rise above the resistance of the trendline connecting the July 10 and July 20 highs, currently at $10,200 (blue line above left). The bearish (downward sloping) 5- and 10-day moving averages (MAs) are also lined up near the trendline hurdle.

Also of note, the 5- and 10-day MAs have found acceptance below the 50-day MA – the first bearish crossover since early February.

Continued low trading volumes (above right) further question the sustainability of the recovery seen in the last 24 hours.

Hence, a fall back to $9,600 cannot be ruled out, unless BTC cuts through the descending trendline on the back of high volumes.

In that case, prices could rise toward $11,120, as the 14-day RSI is already reporting a falling wedge breakout (a bullish reversal pattern).

That said, the overall outlook would turn bullish only if prices print a UTC close above $11,120. A breakout above $11,120, if confirmed, would open the doors to $13,800 (June high).

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin via Shutterstock; charts by Trading View

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.