Bitcoin (BTC) – Could further improve its short-term outlook in the coming sessionsPosted on Sunday, July 31 2022 at 8:26 pm GMT+0000
The crypto-king geared a bit lower after its latest bullish drive was halted at a new high of 24,700 on Saturday.
The good news is that the 20-period exponential moving average came to the rescue in cooperation with the 23.6% Fibonacci retracement level of the 13 – 30 July bullish run, and managed to buffer downside forces over the weekend. If these barricades stand firm, the price may re-activate its upward trajectory to overstep the latest intraday high at 24,700 and print a new higher high, likely around the May 12th low of 25,400. Moving higher, the next obstacle could pop up near the 27,000 zone.
The bad news is that the momentum indicators witnessed some remarkable weaknesses in the last couple of days. The IMI drifted lower from the overbought area to its neutral threshold, where it has been following a horizontal path lately, while the TSI, although remaining in the positive region, lost steam and slipped beneath its moving average.
Nevertheless, sellers still have some work to do before they claim victory. First, they will need to pierce below the 20-period exponential moving average and the neighboring 23.6% Fibonacci level at 23,300, and then decisively penetrate the 55-period exponential moving average seen around 23,000. If that turns out to be the case, the bearish action could pick up steam towards the 50.0% Fibonacci level at 21,800. However only a clear breach below the July 26th intraday bottom at 20,700 could ruin the current positive structure.
Summing up, although upside pressures are currently looking dim, Bitcoin could still improve its short-term outlook in the coming sessions if the 23,300 – 23,000 base proves solid.