The trading price of Bitcoin (BTC) ended up slipping lower than the support line. The performance graph shows that on July 12, Bitcoin ended up falling below the symmetrical triangle.
At that point, it seemed that the bears were attempting to bring the trading price of Bitcoin lower, and they would succeed in doing so. However, the bears were not able to keep up their pressure on the bulls.
The bulls were not letting the bears build enough pressure to pull Bitcoin much lower. It was observed that the bulls kept purchasing Bitcoin at lower levels.
The performance graph shows that by continuing to buy BTC at the lower levels, the bulls were able to push Bitcoin to a high of $20,842. The $20,842 price is the 20-day EMA for Bitcoin.
Bitcoin’s Price Expected to Rise to $23,753
If the bulls want to show that they are gaining more strength than the bears, they will have to sustain their price over the 20-day EMA.
If the price of Bitcoin keeps growing stronger, then it will have confirmed that the bears are losing their grip on the trend. This would give an opening to the bulls to push Bitcoin’s price higher.
In order to push Bitcoin’s price much higher, they will need to sustain its price above the 20-day EMA. If the price of Bitcoin manages to stay over the 20-day EMA, it will have the opportunity of rising up to the 50-day SMA. The 50-day SMA for Bitcoin currently stands at $23,753.
Bearish Price Expectation
Although the investors are viewing the current of Bitcoin as a positive one there are chances it may get invalidated. If it does, then it will mean that the trading price of Bitcoin is still in the negative zone.
If the bears are able to build stronger pressure against the bulls, then they will not able to defend the 20-day EMA. If the bulls keep getting pressurized, then the trading price of Bitcoin may start falling below the support line of $20,842.
From there, the trading price of Bitcoin may continue falling in the lower zone. The bears will have the opportunity of pulling the trading price of Bitcoin lower. If their pressure keeps building over the bulls, they will continue moving out of the way. This way, the bears will be able to pull Bitcoin’s priced much lower.
In this particular scenario, the trading price of Bitcoin may get pulled down to $18,626. This will be another red alert for the bulls as they may try really hard to push Bitcoin’s price higher.
However, if the bulls fail in diverting the pressure, then the trading price of Bitcoin may get pulled down to $17,622.