To the joy of many (except for those that exclusively hold Altcoins), Bitcoin has been storming this week after being able to increase by 14.5% over the past 7 days to bring the price for the coin up to the $11,707. Bitcoin was even flirting with the $12K level for a couple of days but has since turned away.
Despite this promising increase, Bitcoin has now reached resistance and has started to show signs that it MAY rollover. If this is true, I fear that Bitcoin could potentially continue to consolidate during August or perhaps even drop back toward $10K. It is still unclear if this will be true as the market continues to battle at the resistance level. A break above the trend line would certainly signal a move higher toward $15K as August progresses.
Check out the details below!
BTCUSD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
Looking at the chart, we can see that Bitcoin has reached the aforementioned resistance at the falling trend line. We can see there have been moments of promise where it looked like BTC may break above but these soon resulted in the recent rollover currently being experienced.
Where Can We Go From Here?
If the sellers continue to push Bitcoin lower, we could certainly be heading toward $10K by the end of August. Initial support toward the downside is firstly expected at $11,500 and $11,000. Beneath $11,000, the next levels of support are found at $10,500, $10,315 (short term .5 Fib Retracement) and $10,000. If the sellers continue beneath $10k in August (which I think is unlikely) support can be found at the 3-month-old rising trend line and then at $9,679.
Alternatively, if the bulls wake up and push the market above the resistance line, Bitcoin will be free to continue its bull run higher. Initial resistance is expected at the short term 1.272 and 1.414 Fib Extension (drawn in orange) priced at $12,513 and $12,871, respectively. This is followed with strong resistance at the bearish .618 Fibonacci Retracement around $13,409. If the bulls break above here, there is not too much resistance on the way toward $15K.
Unfortunately, I am very sorry to say that at this time I cannot provide a clearer prediction due to the uncertainty regarding the current resistance line. A break above the resistance will lead me to believe that BTC will head toward $15K as August progresses. However, if the sellers continue to push further away from the resistance we could be seeing $10k at the end of the month. I will be watching this level of resistance very closely over these next few days to see what develops.