|

Videos | Market Analysis

UseTheBitcoin Market Update (BTC) | July 9th, 2024

Author

Rickie Sanchez

Tags

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Category

Videos / Market Analysis

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Reading time

2 mins
Last update



After weeks of relentless selling pressure, Bitcoin (BTC) has finally shown a glimmer of hope with a small green candle. 

While it is too early to draw definitive conclusions, this recent price movement suggests we might be forming new support levels. 

In this article, let’s analyze the current state of the Bitcoin market, explore technical indicators, and discuss the role of upcoming events, including the election, in shaping BTC’s future.

Downtrend Continues

image 191

In the daily timeframe, Bitcoin remains in a downtrend. The rejection at the 200-day moving average (200MA) was a significant setback, but the recent bounce indicates that bulls are not entirely defeated. The key is to identify potential support levels that could prevent further downside.

Bullish Divergence

image 192

Despite the bearish trend, the relative strength index (RSI) reveals an interesting development. There’s a bullish divergence visible in the daily timeframe. This means that even as prices declined, the RSI formed higher lows, suggesting underlying strength. However, we must exercise caution, as divergences alone do not guarantee trend reversals.

US Election Catalyst

The absence of a clear catalyst has kept traders and investors on their toes. However, the upcoming US elections loom as one potential driver.

Surprisingly, former President Donald Trump has expressed support for Bitcoin. This marks a significant shift, as it’s the first time a prominent political figure has openly endorsed the digital asset. If Trump’s influence continues, it could increase prices and encourage broader adoption.

Trading Strategy

Given the uncertainty, the best strategy right now is patience. Here are some considerations:

  • Observe And Learn – Rather than actively trading, closely monitor the market. Look for patterns, observe price reactions, and stay informed about news and events.
  • New Support Levels – The recent bounce suggests we might have found new support around the $55,000 to $57,000 levels. Keep an eye on these zones.
  • Risk Management – Preserve your capital. If Bitcoin revisits the $50,000-52,000 levels or drops further to $42,000-$46,000, consider it an opportunity to buy. But always manage your risk.

Final Thoughts

November is still a few months away, and anything can happen in the crypto world. Stay informed, adapt to changing conditions, and remember that patience often pays off. Whether Bitcoin will explode or fizzle out remains uncertain, but we navigate these waters with vigilance and resilience as traders.

For more in-depth technical analysis like this one, make sure to subscribe and hit the notification bell on UseTheBitcoin’s YouTube channel. We post daily videos covering the crypto markets, so don’t miss out!