Bitcoin Price Analysis: July’s Moment of Truth

The purpose of this article is to give an up to date price analysis as current as July 6th, 2018.

As you can see there was a minor little uptrend going from June 29th to July 5th (the day that just passed). Price action broke below. Does not mean that the price will start crashing downward, it just means that it’s not trading along that uptrend any longer.

$6.4k-$6.5k territory has defended itself very well. Good sign.

Once again — this is the 1H chart at this present moment.

I’m seeing a potential double bottom formation that can be identified on this 1H as well.

It’s worth noting that the pattern has not formulated itself yet, but it’s still on its way imo

Especially if the price turns back up (note that green candle (Heikin Ashi) that is beginning to develop on the most recent time period.

This pattern formation would not be confirmed until the neckline has been surpassed though — which would be slightly above on this chart. This isn’t anything to get too hyped over though because this is a 1H chart after all

Here’s another indicator that I use — this one is on the daily chart

  1. I took the Balance of Power (indicator)

2. Then I applied the RSI (7) to it.

3. Then I applied the EMA (50) to that line

This gives me a general sense of buying power. It’s worth looking at to get a sense of the buy pressure in the markets. This underlying basis indicator (BoP) is based on the distance between OHLC (don’t have the specifics on me at this moment in time). So its trustworthy in its calculations.

My indicator is still booming at this moment in time — doing fine. Signaling a firm buy right now.
RSI on the daily turned down a little bit — but I’ll live with it. Nothing that’s crazy or signaling a sell yet.
Once again that $6.7k-$6.8k mark is crucial

This is on the 4H chart. Definitely worth noting.

Brought this up yesterday — but just one more reason why this range is critical and Bitcoin’s success/failure to break through here may dictate a lot.

If you compare it to the rest of the market though — it’s been surviving well.

Conclusion

We’ll have to see what Bitcoin does from here in order to get a real sense of the price action.

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