Weekly Bitcoin Technical Analysis (July 12th, 2021)
History for the week (From 12July to 18July , 2021)
History for the week (From 12July to 18July , 2021)
Opening price: $34,259, closing price: $31,778 => Spread is $2481, down about 7.24%).
Highest price: $34,678, lowest price $31,020 => Spread is $3.658 (According to data from Binance exchange).
Fundamental Analysis
We summarized some outstanding information from last week:
Negative news:
The Italian regulator has blocked consumers from investing in crypto through Binance on all its platforms
Chinese cryptocurrency community closes operation amid Beijing’s crackdown, as investors cry ‘fraud’
Hong Kong, Lithuania Issue Binance Warnings
Positive news:
Woori Financial Group, one of leading banks in South Korea becomes the third major banking institution to enter the digital asset custody service (DACS) market. On July 11, Woori joins the first two South Korean banks namely KB Financial Group and Shinhan Financial Group to enter the crypto custody services.
The Central Bank of the United Arab Emirates has unveiled its plan to launch a digital currency as part of its 2023–2026 strategy to become one of the world’s top 10 central banks.
Bank of America might allow limited Bitcoin futures trading.
S&P Dow Jones Indices Launches S&P Cryptocurrency Broad Digital Market Index
Technical Analysis
BTC/USDT weekly chart
Last week bitcoin price closed below the support level (~34K) of the previous 8 weeks. It’s signal that the downtrend is clearly visible in the weekly chart. It is worth noting that the MACD has crossed below the zero line, if this week the price closes not above the resistance level (~34.2K) to push MACD up to the zero line, the downtrend will continue for a long time.
However, we still have a good signal that the trading volume in the past 8 weeks is decreasing now (according to data from Coingecko). Decreasing volume in a downtrend will be a positive sign for a reversal.
BTC/USDT daily chart — Tradingview
For the daily chart, the price is forming a decreasing triangle pattern. If the price formed this pattern, when near the end of the triangle the price will have strong volatility and usually break above the upper edge of the triangle as possibly a bullish reversal.
As the chart above, the price zone 28–29k will be the support area of the triangle. We should wait patiently for the price reaction in this area.
Goodluck!