It’s been almost 3 months that BTC has lasted on a big, boring side. However, within this range you can also observe slight intentions, which can undoubtedly escalate into the resumption of major trends. Today’s Bitcoin (BTC) rally is one of those intentions, which makes us wonder if it will be the one that will lead the price to test the $10,000 mark.
Technical Analysis of the Bitcoin Price after Today’s July 21 Rise
The intra-day trend clearly changed to an upward one. And as a good sign for buyers, the intention we are witnessing is quite strong, with a daily candle capable of wrapping up the losses generated in 10 days.
In the previous two weeks, the price was locked in a clean downward channel. However, today it was effectively broken through the 200 4-hour period SMA that was down.
The EMA of 8 and SMA of 18 in this same time frame are equally bullish at present. They may work as dynamic support if Bitcoin backs up a bit before continuing the climb.
Bitcoin price continues to be sideways, but is about to wake up
With the BTC locked in a big side, it is still difficult to consider relevant the small upward change we are witnessing, but it could certainly affect larger trends.
In the short term, he used the 8-day EMA and 18-day SMA moving averages to identify the trend, which are currently crossed upwards.
However, as can be seen in the graph below, in situations like the current one, they tend to cross back and forth in a short time, invalidating signals that in other scenarios would be considered to forecast movements of several days.
With the Cryptosoft rally today, the price hit a resistance at USDT 9,435, which is already causing it to fall back a bit. If it manages to break through, the ground will be cleared to at least USDT 9.689. Then there is no relevant level until the significant barrier at USDT 10,000.
For now, the odds are in favor of this scenario. However, as I mentioned, in consolidations like the one we are currently experiencing, the direction could change quickly.