Bitcoin Reversal After Hitting Demand Area

8 ส.ค.

In my two most recent BTC analyses I talked about an ideal area for entry in case BTC reversed from the top yellow resistance of the channel it has been trading in for 6 months at this point.

As expected, the green area on the chart has functioned as a huge area of demand, right in between the supports (yellow and purple). The drop was a bit more steep than initially anticipated due to a big sell-off in the stock markets, but the reversal is here nevertheless.

At this moment it's still unclear whether BTC will find its way up all the way towards the top of the channel yet again. The daily shooting-star wick suggests that bulls took over in the short-term, however.

As mentioned in previous analyses, BTC is currently trading in a longer term grey zone. I'm bullish above the top yellow resistance and bearish below the bottom purple support. It's not the time for long-term longs or shorts, in my view.

Remember my last ETH analysis where I talked about the initial bearish shock after the spot ETF approval (we saw the same with the BTC spot ETF). If the BTC ETF is any indication, we will enter a long-term trend from here.