A recent CoinDesk analysis claims that the price could regain its bullish momentum above the $8,350 range according to technical charts. At present, it appears to be trading in a narrow range a sign of consolidation before a move.
The CoinDesk analysis
The BTC price had moved back above $8,000 on Friday. However, over the last 60 hours BTC has been trading sideways.
Bitcoin’s (BTC) price is consolidating in a narrow range at press time and could regain bullish momentum above $8,350, technical charts indicate. Bitfinex data show the upside of the range range around $8,300 and short-lived dips to just above $8,000 at $8,050.
The consolidation today has neutralized the bullish outlook but a bearish reversal cannot be called yet. If the price moves up from the narrow $250 trading range the rally could resume. At press time, 11:36 UTC July 30 BTC was trading at $8,170 on Bitfinex.
On Friday, the BTC price saw a descending broadening channel breakout signaling a revival of its recent rally. There could be a test again of the $8,507 July 24 high.
But the bullish move did not happen and the movement was sideways at least until later today. An upsdide break of the sideways channel would confirm the the descending broadening channel breakout allowing a rally as far as the 200-day moving average (MA) of $8,468. But a move back into the descending broadening channel could lead to further dips.
Even so, the major MAs are biased toward the bulls. The 50-candle,l 100-candle and 200-candle moving averages are all positive and also located one below the other.
The relative strength index (RSI) no longer indicates BTC is overbought indicating there would be a rally above $8,500 and the 10-day MA is also rising favoring the bulls.
CoinDesk’s outllook based on the analysis
CoinDesk’s view is: “Bitcoin’s price consolidation, when viewed against the backdrop of the descending channel breakout, indicates bullish exhaustion. Consequently, the immediate bullish outlook has been neutralized. A break above $8,340 (upper end of the sideways channel) would allow a re-test of $8,468 (200-day MA) and $8,507 (July 24 high). A daily close (as per UTC) above the 200-day MA would confirm a long-run bear-to-bull trend change. On the downside, a fall back into the descending broadening channel would shift risk in favor of a deeper price pullback to the 100-candle MA in the 4-hour chart, currently located at $7,496. ”
Present situation
As noted earlier, later today the sideways pattern was broken as BTC dropped well below $8,000. However, the price rebounded quickly to above the $8,000 mark. It is now July 31 UTC. The price of bitcoin opened at $8,168 according to CoinDesk. This is the high today so far, with the low being $8,108. It has managed to stay above the $8,000 level. So far there has been no retest of the $8,468 level. At just 2:29 into July 31 UTC BTC was trading at $8,130 slightly down from the open. The trading appears to be again in a narrow range and sideways but it is still early in the day. The present price of BTC can be found here.
