09/07/22 BTC/USD Analysis – Bitcoin Tests Key Structure, One Step From Abyss

09/07/22 BTC/USD Analysis – Bitcoin Tests Key Structure, One Step From Abyss
09/07/22 BTC/USD Analysis – Bitcoin Tests Key Structure, One Step From Abyss

Bitcoin (BTC) finally moved and the move was exactly as I expected – I’m not bragging about it, the support bands for the rate simply act like a magnet. After many days of consolidation, when the exchange rate practically went nowhere, we finally have something to build on again.

And that’s it full testing the demand structure is the most important thing for us. Will the bulls clear the streak? How long will it take for them to bounce back? Or, on the contrary, will we merge much deeper? We have to wait for that. Logically, the bulls already see a great opportunity at this moment, because we are de facto testing the yearly low.

Current situation on 1D BTC/USD

So Bitcoin is down about 6%. That’s not a huge move, but considering that previous pickle, it’s seriously a relief. For many days nothing happened and the fresh movement therefore made me happy.

We are finally here they tested that demand structure. And they fully tested it. With full testing, we can now see how the market will react. Therefore, take a detailed look at the progress of the BTC exchange rate from June to July. How the exchange rate reacted around that $19,000. Can you see the difference? That fresh red candle closed in full form with no lower wick and volumes are almost the same as July 8th. So I don’t see any success for the bulls here at all.

But it is the first ever full testing since July 13. Therefore, it is necessary to focus now on how the following daily candles will close. Observe their form, of course in connection with the volumes. Simply put, if you’re bullish, we want to see rebound attempts ahead. Long lower wicks for candles.

On the contrary, the bears look for a logical breakthrough, but it may not be right away. The course can easily consolidate on the support and there will also be small attempts to rebound. If the level falls anyway, the next stop is for BTC at USD 16,000.

When we look at the RSI indicator, we are testing the borderline 30 points. Said level works as a support, but I wouldn’t give it much weight. There are no divergences and we are not as deeply oversold as we were in June.

In conclusion

Bitcoin has done what we have been patiently waiting for for a few weeks. Price action is actually nothing more than new information for the analyst. And the price action of the following days can be crucial because of this. Therefore, it is definitely worth following the development closely. We may not even have to wait until late September/October.

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ATTENTION: None of the information in the article is investment advice. The analysis does not attempt to predict future price developments. It serves exclusively as educational content on how to think about the market. Do your own research and analysis before making any investment, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual consideration of risks

The article is in Czech

Tags: BTCUSD Analysis Bitcoin Tests Key Structure Step Abyss

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