The bitcoin has raised its head: after months of falling prices alternating with phases of drowsiness, prices have returned in mid-July above 7 thousand dollars
There is something new today in the air, or better, in the crypto sector. The bitcoin has raised its head. After months of falling prices alternating with phases of drowsiness and drowsiness, having risked a few times the collapse, the most capitalized of all altcoin has started to send encouraging signals to the many investors who await a new upward phase to rush to buy. Well, let's analyze in detail why the bitcoin scenario could soon turn to good weather.
The encouraging news from which to start is that the prices of bitcoins have returned in the middle of July above 7 thousand dollars after having fallen below them in the session of 10 June. A psychologically important threshold not so much in absolute value but because the last leaps have allowed prices to break the downward trendline that kept prices under pressure since the beginning of the year (see image below)
As written above it is not so important the return beyond 7 thousand but how this return happened. So I make a brief summary of the previous installments. At the first sharp decline in the second half of December 2017, after the absolute maximum, bitcoin prices at the beginning of 2018 resumed the bearish path after a short recovery at the end of the year. On 6 February they reached an absolute minimum of 6 thousand and this threshold also held during the downward pressure of the first half of April. But it was violated in the second part of June, when prices fell below 6 thousand dollars, causing fear of the worst, or a new downturn, which was not there.
Even if violated the area of 6 thousand dollars held up and prices slowly have recovered, and this is a very good signal. At the beginning of July, following the recovery, the prices violated the bearish trendline, sending another positive signal to the market. The third positive sign is the sessions of 16 and 17 July. In these two days the prices scored two strongly bullish sessions with a strong increase in volatility, after which it was very reduced in the previous weeks. And if you look at the historical price chart of the bitcoin you notice how often a rising phase was born with one or more strongly bullish sessions (Larry Williams would call them wide range) of reaction to a bearish phase. And this scenario is occurring precisely with the sessions of mid-July.
The new bullish phase will be confirmed with the overcoming of 7,800 / 8,000 dollars area. In that case the prices will target 9,900 / 10,000
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