Bitcoin is on the road to recovery after resistance left in tatters; bulls to make a comeback?

  • 03 July 2019, Wednesday, 07:00

On July 2, Bitcoin’s market dropped by over 30 percent, causing the $14,000 pipe dream to crash and burn. Kicking the market while it was down, the bearish onslaught pulled the price to the four-figure mark, with the $9,500 mark being revisited, albeit briefly.

Within hours of the fall however, Bitcoin was up by 5 percent over the hour and at press time, was recording a daily gain of over 15 percent. The glory days of $11,500 were back, less than 48 hours after what seemed like a lifetime.

Cryptocurrency analysts were losing sleep over the massive price revamp as many were shuffling through their charts trying to provide deeper insight into this correction and immediate rise, given the multitude of support and resistance levels placed between the price points.

Josh Rager, a well-known trader and member of the advisory team at Level Invest and Token Bacon, suggested that the 20 percent gain in less than 24 hours was an “extremely bullish” sign. This does not just end here with sideways movement, since the price could push as high as $11,760 and mark Bitcoin’s 1-day resistance. However, the severity of the same was classified as “minor.”

The tweet read,

$BTC has just hit over 20% gain in less than 24 hours Looking extremely bullish and could be heading towards $11,760 (1 day resistance) Wanting to go to sleep but it’s hard to rest when Bitcoin crushes resistance after resistance on lower time frames Enjoy your gains

— Josh Rager ???? (@Josh_Rager) July 3, 2019

Following the pullback, Rager referenced historical data and stated that an “average gain of 153%” will amass prior to the next “big pullback.” In the chart attached to the tweet, the analyst charted the 1-week price of Bitcoin and highlighted the time period between November-December 2018 to June 2019, and in the same, the average price gain was 168 percent.

He added,

“Bitcoin up 168% since capitulation bottom which started accumulation and new uptrend for market cycle.”

From resistance to support, with Bitcoin dropping to as low as $9,700, perspective is required at both ends of the spectrum.

Joshua Mahony, Senior Markets Analyst at London-based IG, employed the Fibonacci Retracement, which indicated the level of $9,000 as being the key support level, and which the analyst himself opined as being an “interesting level,” which could point to the “bulls gaining ground.”

He tweeted,

Bitcoin back under pressure again today. Down 30% since Wednesday’s peak. However, 76.4% Fibonacci retracement area points towards $9000 being an interesting level that could see bulls start to gain ground once again #Bitcoin #BTCUSD #XBTUSD

— Joshua Mahony (@JMahony_IG) July 2, 2019