Bitcoin’s support line flips to become resistance on the charts; how long before the bulls give way to the bears?

  • 19 July 2019, Friday, 05:40

In the world of crypto-assets, the relevancy of one’s argument regarding price movement is short-lived. What might make sense on a Monday, might flip completely on a Wednesday. This is characteristic of the the inherent volatility of the cryptocurrency market.

Looking at the larger picture, the last few days have been crucial for the collective digital assets industry, all thanks to the attention brought in by Facebook’s Libra from US government officials. Inevitably, Bitcoin was also dragged into the conversation.

Most people talking about Libra shared the same tune. Facebook’s crypto was widely criticized by all. However, Bitcoin received a better reception and apart from a few disproving statements, the king coin was largely on the “lawful” side of these individuals.

Despite the same, the price of Bitcoin fell on 17th July 2019, with the valuation of the virtual asset down to $9,168. The last time Bitcoin threaded in this range was on 18th June 2019. During the devaluation however, keys changes were observed in the market.

Since the surge of 26th June, Bitcoin has bee hovering over the support level of $9800 and consolidating in the range of $10,500 to $12,000. The monthly resistance of $10,759, while acting as support over the past few weeks, had flipped over press time, with the support now exhibiting a flip.

Josh Rager, a popular trader and crypto-analyst, drew out an analysis which suggested that the monthly and daily resistances of $10,759 and $10,850, which had acted as support for a long period, had exhibited resistance traits at press time.

Since the price plummeted on 18 July, the price of Bitcoin has been unable to breach these resistances and at press time, the valuation was placed at $10,700. Rager suggested that the virtual asset had to cross these resistance lines again in order to continue recording bullish trends.