For most of yesterday, Bitcoin’s price was hovering around $10,800-$11,000 and was trying to overcome the long-term ascending trend line, shown on our daily chart (marked in orange).
As the Asian markets woke up, it finally happened: The trend line, along with the significant $11,000 resistance area, got left behind. By breaking over $11,000, Bitcoin finally put an end to the lower-highs formation of the past 20+ days (see daily chart).
Could Bitcoin face new 2019 highs? Max Keiser said Bitcoin would reach $15,000 this week, but could it be so?
I’m sensing #Bitcoin will cross $15,000 this week. Confidence in central governments, central banks, and centralized, fiat money is at a multi-decade low.
— Max Keiser, tweet poet. (@maxkeiser) August 3, 2019
In the meantime, when you think there is no further room for altcoins to fall in light of Bitcoin’s surging dominance rate, they tumble even more. Ethereum’s price is at its lowest level against Bitcoin since March 2017. Other altcoins are bleeding against Bitcoin, in what seems like an endless tunnel. No one can predict when, if ever, another altcoin season will take place. Until it does, risk management is the name of the game.
Total Market Cap: $305 billion
Bitcoin Market Cap: $206 billion
BTC Dominance Index: 67.6%
*Data from CoinGecko
Key Levels to Watch
Support/Resistance: Following the massive breakout, Bitcoin is now facing the $11,500-$11,600 resistance area. The next level of resistance will be $11,800-$12,000. This contains the descending trend line from the 2019 high, marked in yellow on the daily chart. The following resistance will be $12,400-$12,500, before reaching the vicinity of the current 2019 high around $13,500-$13,880.
The nearest support area is the current price area. Further down is the descending trend line serving as resistance-turned-support at $11,150. Next is $11,000, followed by the “good old” $10,500-$10,600 region (from yesterday).
Daily chart’s RSI: The RSI is showing bullish momentum, and the breakout is real as the RSI has broken above 60 and is now facing 64. The Stochastic RSI oscillator is about to cross over into oversold territory. If this plays out, Bitcoin will likely undergo a correction before trying again to reach higher levels (we are in bullish conditions until proven otherwise).
Trading Volume: It was mentioned here already, but the current Bitcoin rally has lacked some buy volume so far. This could change at any moment, and part of the reason for it might be that the world hasn’t yet returned to work from the weekend. Watch how the volume candle closes today (Monday).
BTC/USD Bitstamp 4-Hour Chart
BTC/USD Bitstamp 1-Day Chart
Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.