The S&P 500 Index continued its resolute advance towards its all-time high, securing a notable 3% gain throughout July. The easing of inflationary pressures and the prospect of the Federal Reserve concluding its tightening cycle have served as catalysts for bolstering riskon sentiment.
However, this optimistic atmosphere failed to extend its beneficence to Bitcoin, which predominantly lingered within a confined range in July, and is now poised to conclude the month with a loss exceeding 3%. The most pressing query plaguing traders is when and in which direction Bitcoin's range will be breached.
Bitcoin declined below the 50-day Simple Moving Average (SMA) at $29,442 on July 30, signifying the bears' endeavor to assert control. Nevertheless, the presence of a long tail on the day's candlestick indicates buying activity near the horizontal support level at $28,861. The downsloping 20-day Exponential Moving Average (EMA) at $29,624 and the Relative Strength Index (RSI) below 44 suggest that the bears hold a slight advantage. Any potential attempt to initiate a relief rally may encounter selling pressure at the 20- day EMA.
Should the price reverse from this resistance and breach below $28,861, it could commence a descent towards $27,500 and subsequently $26,000. In order to avert the decline, the bulls must propel the price above the 20-day EMA. Consequently, the BTC/USDT pair could experience an initial ascent towards $29,500, followed by a potential move to the resistance zone spanning from $31,500 to $32,400.
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