Good morning everyone. Hope you're having an amazing day so far! I wanted to do a price forecast for Bitcoin since I haven't done one in a while and I think now is the perfect time to do an update.
So let's jump right in and talk about what happened over the past week. We saw massive volumes coming in at the end of June which propelled us to nearly $14,000 per BTC before sharply correcting back down within a matter of days. The bearish diamond formation (yellow rectangle) was confirmed June 30th with a weekly low of $9,651 after we retraced, but that only lasted for a short while as the buyers stepped back in for some needed support. Much of this buying was initiated by general market FOMO from retail and institutional investors, many of whom were pumped about the Facebook announcements.
Since then we have seen some price consolidation in the $10K- $12K zones as the market attempts to find a new base. The buyer demand that we have seen could easily push us back into the $13K+ territory within a matter of only days mainly due to the low liquidity markets Bitcoin trades on. Remember that millions and millions of BTC are locked up either in cold storage or lost forever and this affects the way the asset trades obviously by reducing circulating supply. This allows for whales to come in and move the price very quickly in a short amount of time because there simply aren't enough orders on the books.
Right now the $9,600 and $10,800 levels are acting as hard support with buyers only slightly interested at current prices ($11,400). Many traders are waiting for the price to fall below $10K before they are willing to buy again while the more hopeful and patient ones are sticking to dollar cost averaging strategies. One thing is for certain right now- public awareness and curiosity is building and more people are educating themselves about blockchain technologies and its applications in finance.
Looking at the 1-hour chart we can see that the Bollinger Band ranges are tightening as the volumes have begun to decrease. The price is overbought at the current time and the MACD is just below the Zero Line and rising which could be bullish if we can get a full crossover and sustain above.
Today I would say that we need some higher volumes to propel the price out of this consolidation range and that could easily happen at any moment. There is always a calm before the storm so be prepared to weather whatever comes our way :-D!
Predicted Daily Price Range: $11,000- $11,600 (with low volumes)
Current Resistance To Break: $11,600- $12,000
Current Support: Upper $10K zone - $11,100
BUY/SELL/HODL: BUY or HODL
*Never invest more than you are willing to lose and always do your own research before making any investment decisions. I am NOT a financial advisor and this is NOT financial advice- this material is intended for entertainment and informational purposes only. Hit "CTRL + or CTRL -" to change size of chart.
(All pictures are free domain images created by myself with the help of Coinigy.com.)