BTC Price Analysis: Bitcoin Revives Nearly 55% Off Lows, But It May Face Rejection At these Levels

Domenic
August 8, 2021
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bitcoin
  • BTC price has revived nearly 55% off its low
  • BTC price has just kissed the 200 day MA
  • A long term trend line may cause rejection
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Bitcoin Price Levels to Watch Out

Bitcoin (BTC) price has finally broke out of its 2 month range that bears has continuously kept price within. This is a great sign for the overall crypto market as the majority of coins have followed BTC’s lead and have revived strong off their lows. But, before we can say the market is in the complete clear, BTC still has important marks to break & hold. Many anticipate new ATH this year but there is also a bunch of others who believe this a dead cat bounce for the markets, setting the stage for a drop to low $20,000s.

BTC held the $30,000 support multiple times as bulls were always there to gobble prices back up. This provided a launchpad for BTC to rise $15,000 in nearly 3 weeks. At the time of writing, BTC is getting rejected at a long term trend line that has held prices down since the ATH was set. BTC must clear over this to technically be in a complete uptrend.

Along with this trend lies the 200 Day MA. Price has been stuck under this MA for over 2 months & bulls must clear this to be in a safe state. There is also a major resistance of $44,700 that must clear along with the two other marks.

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Bitcoin Price Analysis: BTC/USDT 1 Day Chart

TradingView Chart Snapshot
If BTC fails to clear over these 3 important marks, price will retrace back to minor support of $42,500. This seems like the likely scenario as of now. If this minor support fails to hold BTC, further downside will occur once price breaks below the short term trend line. This will confirm a slight bearish trend is in place & BTC will likely go down to retest somewhere within its major support zone of $37,800-$40,200.
  • While looking at the Relative Strength Index, we can see that strength peaked into the overbought territory 2 different times the last week. Unfortunately, while BTC just hit near 45k, the strength printed a lower high than its previous push to $42.5k.
  • This is called a bearish divergence and they are highly accurate within the crypto space. The Stochastic RSI did the exact same thing as it printed a lower high than before. Both indicators have a bearish divergence & this will likely cause a retrace to occur.

BTC Price Intraday Analysis

  • Spot rate: $44,000
  • Trend: Bullish
  • Volatility: High
  • Support: $42,500
  • Resistance: $44,700
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.