BTC/USD is trading a touch below the 23,000.00 level as of this writing. On the 20th of July BTC/USD did achieve a high of nearly 24,295.00 before reversing lower and touching 20,700.00 on the 26th of July. The low for July was on the 13th of the month when BTC/USD traded near the 18,890.00 ratio. The low for June was near 17,599.00. On the 1st of June BTC/USD was trading near the 31,700.00, before the vicious selloff of Bitcoin began to generate tremendous force downwards.
Bitcoin has gained but Resistance levels have proven Durable and Caused Reversals
The past two weeks of trading for BTC/USD have produced gains certainly, and the price reflected today if the digital asset was purchased in the middle of July would represent a solid gain in many short term trading accounts. However, things are never that easy while speculating. Buying at the perfect time is elusive. People often brag that they have bought at lows and sold at highs, but if evidence is asked for this can be problematic.
And traders who have had the courage to seek buying positions have not had the joy of a one way ticket upwards. Resistance levels are still exhibiting strength and until BTC/USD can sustain higher values and ignite positive sentiment that is widespread, a battle remains to prove the trajectory has sincerely undergone a shift of dynamics. Reversals lower can cause traders to give up and get out of trades particularly when they cannot afford to keep overnight positions.
BTC/USD trading above 24,000.00 was a solid sign, but its reversal lower did challenge important support promptly afterwards. Intriguingly the support levels flirted with only a couple of days ago did manage to hold back the tide, and psychologically traders may feel technical barriers around the 20,500.00 appear to be the key. However, BTC/USD still has the capability of trading with lightning quick flashes and while gains have been seen which have made those pursuing upwards price action smile perhaps, the moves downward continue to be fast and aggressive.
- Resistance levels need to be penetrated and sustained to stoke positive sentiment in Bitcoin, this has not happened yet.
- Support levels have begun to look strong for Bitcoin, but during the long bearish trend consolidation and slight gains have faltered before and proven costly lessons.
Bitcoin has been Immersed in a nearly 9 Month Long Bearish Trend
The challenge for BTC/USD remains creating enough power upwards, to make short term speculators decide to actually participate in pursuing buying positions. Conservative traders – if there are any among cryptocurrency speculators – may remain rather gun shy still of current BTC/USD conditions. A solid wave upwards value needs to be demonstrated. The problem cautious traders face is the fear and question, that if they buy into a perceived track higher will BTC/USD suddenly return to its bearish trend and slide lower wiping out wagers?
BTC/USD Outlook for August
Speculative price range for BTC/USD is 16,000.00 to 28,886.00.
If BTC/USD cannot sustain prices above the 23,300.00 value with a sustained amount of days, speculators may remain skeptical of the upside movement generated. Traders who remain bearish may believe BTC/USD has further room to roam lower too. However, pursuing lower price levels should be done with great care.
Support levels have begun to show some durability. If the 20,500.00 ratio were to be suddenly challenged and proven vulnerable, this could set off alarm bells that the 19,800.00 price vicinity will again see price action. If BTC/USD were to see sustained trading for a number of days below 20,000.00 and consolidation, this could be interpreted very negatively too from a technical viewpoint, and cause a fear that capitulation of large Bitcoin holdings may have to be sold. Needless to say BTC/USD remains extremely dangerous to trade and risk management is essential.
Traders who believe BTC/USD has begun to turn the corner and brighter days are ahead in August cannot be blamed. Support levels have started to incrementally rise, but conservative buyers should remain realistic regarding their price targets. Until BTC/USD is able to break through 24,500.00 and sustain momentum higher and touch 25,000.00, many speculators may choose to remain on the sidelines.
Ready to trade our Bitcoin USD monthly analysis? Here are the best MT4 crypto brokers to choose from.