Bitcoin (BTC) – Bulls returned aggressively to the gamePosted on Tuesday, July 19 2022 at 9:20 pm GMT+0000
Bitcoin (BTC) continued to outperform on Tuesday, stretching the most recent positive thrust to a fresh 5-week high beyond 23,000, and is currently confronting the important upper-Bollinger band where a decisive close higher will imply a larger bullish move.
The squeezed Bollinger bands usually foreshadow a significant change in volatility ahead, something that is also reflected by the uptick in the ATR. Moreover, the momentum indicators are endorsing the current improvement in market sentiment. The Awesome Oscillator finally jumped above its zero mark and the KST is creeping higher in the negative region, both raising the stakes for some additional bullish sessions.
So, a significant daily close above the upper-Bollinger band will further bolster buying interest, steering the price initially towards the May 12th bottom of 25,400. Overcoming this key boundary, the price could then climb to the May 26th inside swing low of 28,000.
On the flip side, if the upper Bollinger band proves a hard nut to crack, the bears may then drift the crypto-king back towards the mid-Bollinger band at 20,600. Lower, all eyes will turn to the July 13th low of 18,900. While within a breathing distance, the lower Bollinger band and the June 18th bottom of 17,600 will be closely watched, as any step lower will secure an acceleration to the late November 2021 bottom of 16,200.
In brief, Bitcoin bulls have returned aggressively to the game, but a firm closure beyond the upper-Bollinger band is still required in order to encourage additional buying activity.