Conservative Analysis Says Bitcoin Still in “Consolidation” Despite 20% Rally

Conservative Analysis Says Bitcoin Still in “Consolidation” Despite 20% Rally

It shows that Bitcoin has broken above a macro resistance, but remains in a macro consolidation range between $10,000-14,000.

  • Bitcoin has seen extremely strong performance over recent days, rallying 20% over the past seven days.
  • As of this article’s writing, BTC trades at $11,250, slightly below the local high of $11,500 and above the Tuesday low of $10,600.
  • The asset remains below crucial macro resistance levels despite the breakout.
  • BTC needs to extend higher and hold above certain price points to confirm the next full-blown bull run, some analyses have suggested.

$10,000 is, of course, a pivotal psychological level that many traders watch. And $14,000 is the highs of the bull market in 2019, along with BTC’s closing price at the end of 2017.

Once Bitcoin breaks past $14,000, it may enter a period of parabolic advance as it did during the last bull cycle, per the analysis.

The importance of $14,000 to the bull case has been echoed by Rob Sluymer, the chief market technician at Fundstrat Global Advisors. Fundstrat is a Wall Street market research firm that has long been covering the cryptocurrency markets.

In a comment shared with Bloomberg, Sluymer said:

“We remain positive on the overall precise structure for Bitcoin and do expect it push through $10,000-$10,500 as part of its longer term bullish technical profile,” before adding that $13,800 is the next resistance band BTC faces.

According to some, though, the importance of $14,000 to Bitcoin may be overstated.

Michael Van de Poppe, a crypto analyst that trades at the Amsterdam Stock Exchange, commented that the bullish threshold for him is “probably $11,600-12,000.” That’s to say, the price region right above the current price action.

“Yes, threshold is probably $11,600-12,000. Lol, well we don’t have any significant levels above that area, so that’s basically the final hurdle before all YouTube influencers are finally going to be right.”

Unfortunately for bulls, there is significant resistance ahead that may halt the rally to $12,000.

One trader shared the chart below on July 30th. It shows that there is approximately $15 million worth of sell orders (on Bitfinex) preventing BTC from moving past $11,500. Data from other exchanges was not shared.


source: is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some BATSend Tip now!

Share your thoughts, add a comment!

You must be logged in in order to place a comment.

Article comments

No comments yet, be the first to comment this article