After a bit of a scare as the Bitcoin price fell back to $64,600, probably reflecting the poor sentiment in the U.S. stock market, the rally that started at the beginning of July looks to have resumed. A higher high above $67K is the initial target for this bounce. Do the bulls have what it takes?
Bounce takes place – higher high next?
Source: TradingView
The 4-hour time frame chart reveals that it was a shorter term trendline from which the $BTC price eventually bounced. Be that as it may, the bounce did happen, and as long as the price can confirm above the key $65,600 resistance, no harm will have been done.
The next step for the bulls is to push the price to a higher high of just under $67K for this current wave of price action, and then a little bit further to $67,250 to take out the main higher high that was put in back in mid-June.
On the other hand, if this current small upswing loses momentum, the price could end up back inside the ascending channel, and a fakeout could be the end result for all the effort put in by the bulls. A move back to the bull market trendline could then be the target for the bears.
$BTC price in good place for next higher move
Source: TradingView
The daily time frame illustrates the crucial position of the $BTC price right now. Things look quite good for a bounce from the top of the descending channel after a confirmation of the breakout. This bounce would also likely succeed in forcing the price back through the key $65,600 horizontal resistance, and on to a higher high in the trend.
Nevertheless, if the price does the opposite and falls through the combined support of the top of the channel and the short trendline, a return at least to the bull market trendline would probably follow, and a revisit of the bottom of the channel and a new bear market low could also be on the cards.
Rally to $73K – stock market allowing
Source: TradingView
With most of Friday plus the weekend still to go, the weekly candle close is the most important factor. A close above $65,600 would be a fantastic achievement for the bulls. It would leave the path open to a $BTC price increase to over $73K, which is the next major resistance level.
Whales were said to be loading up as the price fell to $60K and below. While just recently, the U.S. Spot Bitcoin ETFs have returned to inflows again. A run of seven straight buying days was only broken on Thursday, following a few weeks of nearly all outflows.
One other extremely important factor to keep an eye on is the U.S. stock market. A bad day on Thursday saw Tesla and Google plummet on their earnings announcements. If AI is going to take a beating, what is there left to prop up the stock market? Bitcoin would not be able to maintain its current rally in this environment. Look for the S&P 500 to recover on Friday, and beware if it doesn’t.
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.
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