Bitcoin (BTC) at strong support levels - rally to be continued?
The Bitcoin price is looking comfortable. Back in the middle of its range, $BTC is currently at support around the $64,000 to $63,000 level. Should this not hold, further strong support can be found at $61,000. Once this small pull-back is over, Bitcoin might be expected to resume its latest rally.
Bitcoin taking a breather
All appears to be perfectly normal for Bitcoin. The $BTC price is currently experiencing a small pull-back after its exertions of the last couple of weeks, when the price rallied 24%, equivalent to nearly $13,000, from the low of $53,400.
After such a strong price surge it’s only normal that Bitcoin bulls would take a breather and allow indicators to reset. It now remains to be seen just how much of a correction the $BTC price will take.
Tail winds in evidence
Tail winds are still very much in evidence. The Spot Bitcoin ETFs are maintaining their latest buying spree, and rumours (unconfirmed) are propagating across social media, and even some mainstream media platforms, that Donald Trump will announce a US Bitcoin strategic reserve at the Nashville 2024 Bitcoin Conference.
Where will $BTC bounce?
Source: TradingView
Looking at the daily time frame for the $BTC price, the first of the orange support levels, at just under $64,000, is currently still holding. However, it might be expected that more of a pull-back will be needed for a healthier correction.
Therefore, the second big level of support is at around $61,000. This coincides with the 0.382 fibonacci level for this move. A retrace to this level, and a bounce from it, would be an extremely bullish result.
That said, there is also the possibility that the shallowest fibonacci level of 0.236 could be where the bounce takes place. This is at $63,133, which is a level that the $BTC price has already all but touched.
5 months of price structure
Source: TradingView
Zooming right out into the monthly time frame, it can be seen that the $BTC price over the last 5 consecutive months has kept above the very important $61,000 support, which marks the highest monthly candle tops of the 2021 bull market.
Five months of price action above this level has had the result of building price structure on top of the 2021 bull market top, and this will be very important going forward.
The latest July monthly candle looks as though it can have the greatest impact so far. A huge candle wick to the downside shows the amount of buying that is pushing the Bitcoin price up. A monthly close for this candle at or above the bull flag top trend line could signal the next massive price surge that takes Bitcoin towards $100,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
