After closing the week at $ 35,380, Bitcoin (BTC) started the new week by increasing the gains and rose by 12 percent in the first hours to $ 39,800.
Bitcoin (BTC), on the first day of the week of July 26 – August 1, continues with an 8 percent increase in value with some profit selling at noon. However, the upward trend still continues. The surprise rise earlier today carried the BTC price to the upper band of the falling channel. In this respect, the rise enabled it to exceed an extremely important level.
Daily BTC/USDT chart
As seen on the daily chart, BTC price is currently trading above the falling channel upper line at $37,600, the 89-day EMA at $38,077 today, and Fib 0.5 (38,100) based on long-term fibonacci retracements. According to this; $37,600 – $38,100 range is currently a key support area.
If Bitcoin day close stays above this support area, it will increase the possibility of moving higher. Also, yesterday and today's purchases made the 8-day EMA cross the 21-day EMA upwards. This was also an important bullish signal, we talked about yesterday.
We have witnessed such crossovers several times in 2021, but after 74 days of 8 EMAs being below 21 EMAs, an upside crossover could be perceived positively by the market. Because the last similar pass came at the level of $ 11,000, and BTC had risen to $ 64,000.
On the upside, the stochastic RSI has climbed to the top of the overbought zone. As we mentioned yesterday, as long as it stays above 80, it supports the rise with minor corrections. However, in a possible correction, if the stoch RSI lines slide below the 80 value, this correction can be interpreted as deepening.
In addition, the CMF indicator has entered the positive zone with a steep acceleration on the daily chart.
In summary, if BTC/USDT manages to stay above $38,100 today, its next target with fluctuating price movements may be the $44,000 range.
In case of a possible correction, hourly candle formations below $37,600 will cause BTC to revert to the channel, and the 35,000 – 34,500 band may work as the second support zone at this point.
Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.