Bitcoin Maybe Down But Still Self-Maintaining Above Support Level
As it stands, Bitcoin is hovering above in price above the current support level. In the event of a resistance level bounce back, an inverse H&S pattern could form and a climb through the resistance would provide a possible climb for the leading cryptocurrency on a long-term scale. Currently, the coin is priced above $6300, its support level, and displays a bullish attitude.
The 100 Simple Moving Average has begun surpassing its 200 Simple Movement Average, shedding some light on a possible end to the bearish trend and upside provides the easiest climb through resistance. One surpassed, increased momentum to its reversal could occur.
In the event of that reversal, the rising trends support level could maintain its current position given the area of interest or its previous levels of support and resistance. Bitcoin could possibly climb to $7200 and climb over the expectations of a reversal. A possible and prominent sign of a reversal comes for the four-hour window in which the coin’s price continues trying to finalize the H&S pattern. It could range anywhere from $5800 to $6800, similar in size.
The Relative Strength Index is currently displaying signs of a downward trend and is focused on the overbought sector and could possibly explain the intentions of Bitcoin sellers to lower its price once again.
July saw the value of Bitcoin gain momentum although much of its rise saw yet another drop after a reported hacking and an incident involving a dozen Russian individuals financing their illegal operations and their plan to disrupt the presidential elections in 2016 using Bitcoin as funds.
As these events go on, Bitcoin’s current market direction could come down to the media and its coverage of these incidents or should another damaging event occur related to the company and its coin.