- Most experts and renowned BTC bulls believe that a bullish market comes with its set of corrections.
- The correction under $10,000 was a temporary movement meant to create demand for another surge in price.
Bitcoin is still in a bullish phase despite the corrections in the first two days of this week. Yesterday Bitcoin traded under $10,000 to an extent of forming a low at $9,665 but it resumed the uptrend pulling the value above $12,500 on Tuesday, July 3. Most experts believe that a bullish market comes with its set of corrections including Mike Novogratz, Peter Brandt and Carter Worth.
BTC/USD 4-h chart
The 4-h chart shows the BTC/USD trading pair having revived the momentum above the 38.2% Fib retracement level taken between the last swing high of $13,868 and a swing low of $9,665. While the recovery had stalled under $12,500 in our previous coverage, Bitcoin is likely to correct higher in the afternoon (GMT) session on Tuesday.
The is also above the 100 Simple Moving Average (SMA) 4-h which makes a confluence with the 23.6% Fib retracement level. In case of a reversal, this confluence at $10,665 will function as key support preventing dips towards $10,000.
As after technical analysis is concerned, the correction under $10,000 was a temporary movement meant to create demand as per the analogy of pullback by Carter Worthwhile on CNBC’s ‘Fast Money’ segment. The Relative Strength Index (RSI), for instance, is comfortably above the average to show that consolidation above $11,000 is expected in the coming sessions. At the same time, the Moving Average Convergence Divergence (MACD) upwards divergence proposes the continuation of momentum above $11,500.
Bitcoin Key Technical Levels
Key Support Areas: 100 SMA and 23.6% Fib level confluence at $10,665, $9,665 (Tuesday lows) and $9,000.
Hurdles: $11,500. $12,000 and $13,000.
RSI: Sends slightly bullish signals above the 50 average level.
MACD: Divergence towards the positive region suggestion bulls gaining traction against the bears.
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