Bitcoin’s narrow-range trading resolved to the downside on July 24, indicating that bears overpowered the bulls. There was no specific negative news that could be attributed to the drop. Looks like the Bitcoin bulls may have booked profits before the Federal Reserve’s policy decision on July 26.

Market observers expect the Fed to raise rates this week but many believe this to be the last hike of this cycle. If the Fed signals that it is done with its rate hikes, then risky assets could cheer with a further rally. The Dow Jones Industrial Average has already risen for 11 days in a row, notching its longest winning streak since February 2017.

We said in our previous analysis that a break below the 20-day exponential moving average (EMA) could pull the price to the 50-day simple moving average (SMA) and that is what happened. Buyers propelled Bitcoin above the overhead resistance of $31,050 on July 13 but they could not build upon this strength. The bears sold aggressively and yanked the price back below $31,050 on July 14.

The bears then pulled the price below the 20- day EMA on July 17 and successfully thwarted attempts by the bulls to push the price above it. This indicates that the bears flipped the 20-day EMA into resistance. The 50-day SMA is the last bastion for the bulls to guard because if it gives way, the selling could intensify and the BTC/USD pair could slump to $27,500. The 20-day EMA has started to slope down and the relative strength index (RSI) has tumbled into the negative territory, indicating that bears are in command. If bulls want to prevent the downward move, they will have to quickly push the price back above the 20-day EMA.

Such a move will indicate aggressive buying at lower levels. The pair may then soar to $31,050. 

Lastly please check out the advancement’s happening in the cryptocurrency world.

Enjoy the issue!