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With Bitcoin failing to break past $10000, shows that it is not yet ready to be bullish and that we should expect another dip is on the way. With our main target of $8400 being only 15% below us, we today to look an hourly chart to see if we can get the momentum behind us for dip to our target. This is the BTC analysis for 18 July 2019.
Highlights:
- $10,000 resistance held
- Hourly RSI very bearish
- Divergence to form on hourly
- Main target still $8,400
Focusing on an hourly chart today and looking at RSI, we can see that the overall momentum this past week has been bearish, since RSI has generally been trading below 50. You can see two occasions where BTC attempted to breakout on momentum, but failed to break past resistance on price.
We can see that momentum is currently trying to break out again, but with price still being below resistance leads us to believe that we will not see a breakout. Instead, we could now see BTC start declining towards our main target area of $8400.
Since RSI is already showing some signs of oversoldness, we still need to see some divergence before we can assume this downtrend is over. For divergence to form, BTC would need to make a lower low on price but a higher low on RSI. This will be a signal that momentum has shifted to the bullish side and that price is oversold.
BTC/USD chart provided by Tradingview
Lastly, taking a quick look at the daily chart, we can see that RSI is not showing much signs of bullishness just yet, expect for the fact that RSI has not gone below 40. A reversal above 40 on RSI would indicate that BTC is very bullish and that we could expect it to break past its yearly high very quickly.
BTC/USD chart provided by Tradingview
For now though we wait and see what the hourly has in store for us today, and if it wants to break above $10k, or head down to our main target area of $8400 for this larger retracement.
Do you think BTC has reversed at $9000, or is another dip on the way that will get BTC yo a value of $8400? Let us know what you think in the comments below!
Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.