Today Bitcoin has reached the low at $7282, where it has rejected the 50% Fibonacci retracement level, so far confirmed with a clean bounce. At the same time this is the level where the middle trend-lines are crossing, of the descending as well as ascending channels.
It is also worth mentioning that on the 24th of July, BTC/USD broke above the upper trendline of the extended ascending channel followed by the break above the 61.8% Fibonacci retracement level.
The trend now is bullish, which is obvious as price continues to produce higher highs and higher lows. And now it seems there is a perfect buying opportunity with a huge risk/reward ratio.
If price stays above the recent low, with no daily close below, Bitcoin is very likely to continue moving higher with the key resistance located at $9k, that is 78.6% Fibonacci retracement level, which corresponds to the upper trendline of the descending channel.
Break and close above the $9.1 resistance, should result in further growth, potentially up to $18k area. But on the downside, if current support is broken, short term bullish outlook will be invalidated and Bitcoin will either consolidate or could even get back to the previous low around $6k area.
It is also worth mentioning that on the 24th of July, BTC/USD broke above the upper trendline of the extended ascending channel followed by the break above the 61.8% Fibonacci retracement level.
The trend now is bullish, which is obvious as price continues to produce higher highs and higher lows. And now it seems there is a perfect buying opportunity with a huge risk/reward ratio.
If price stays above the recent low, with no daily close below, Bitcoin is very likely to continue moving higher with the key resistance located at $9k, that is 78.6% Fibonacci retracement level, which corresponds to the upper trendline of the descending channel.
Break and close above the $9.1 resistance, should result in further growth, potentially up to $18k area. But on the downside, if current support is broken, short term bullish outlook will be invalidated and Bitcoin will either consolidate or could even get back to the previous low around $6k area.