Today, July 14, Bitcoin (BTC) is taking another leg down after being rejected hard a few days ago at $13,000. We now consider where support may be found.
At the time of writing, an important exponential moving average (EMA) is supporting the leading crypto. Looking on a wide daily view, below, the 33 EMA (red) has held up Bitcoin’s entire 2019 price history.
We can see this important level above, on the daily – and also see that Bitcoin is currently holding right at this level. Should this level ultimately hold, we can consider the same Bitcoin uptrend intact.
Zooming in a bit to the 12-hour, we see what has been considered at CryptoGlobe Markets a consolidation pattern, between about $13,000 on top and the 66 EMA (equal to 33 on the daily) below. Contracting price and volume signal this pattern.
On the 12-hour candle that just closed at time of writing, sell volume was not extreme but modest, and well below the trend line. We might therefore give Bitcoin a good chance to hold here.
If it does not, though, we must of course consider the consequences. Where might a nastier dip settle?
CryptoGlobe recently covered the so-called “CME gap,” when Bitcoin futures products on the Chicago Mercantile Exchange see a significant gap in trading volume at a certain price.
This gap is found just under $9,000. CME gaps, ever since the CME launched its Bitcoin futures in December 2017, have almost always filled – leading many to speculate that this one should also be filled.
There are other reasons why this area may be a good buy target for a falling Bitcoin. As covered in this long term price analysis on July 1, several factors point to the probability of support somewhere in the $8-9,000 range.
Briefly, the 21 weekly EMA, 100 daily simple moving average, and general 40% of retracement limits are all features of the 2016-2017 Bitcoin bull market. These historical features of the chart all converge at the same area, and make a strong case for strong support there.
But this scenario is not yet of concern, as we have not broken the present market structure. And considering that Bitcoin recently had perhaps its best advertisement possible, we may well hold the daily 33 EMA.