BTC Analysis (July 9th, 2024): Relief After Dip Below $60K?

Updating upon last week’s analysis, Bitcoin has now has formed a bullish daily RSI divergence after dipping below $60K. Could this provide some temporary relief in the crypto space?

Market Analyst
Jul 9, 2024

After a price decline of 15% from $63,750, where Bitcoin rejected off the Daily 20 Exponential Moving Average (EMA), the Bitcoin price is now finding some slight pause at $54,000 – $57,000.

This relief is accompanied by a bullish RSI divergence on the daily timeframe, which has traders asking themselves: Is the bottom in? Or are we just seeing a temporary relief before a larger drop?

Technical Analysis of BTC (July 9th, 2024)

One interesting thing to note is that Bitcoin has now formed a bullish RSI divergence on the daily timeframe, which could signal a temporary relief in the asset. This relief can come in the form of a price rise or sideways consolidation before further price decline.

If Bitcoin does climb higher, we can identify some key levels to watch by using the Anchored Volume Profile tool, which helps identify significant trading zones in the chart.

Let’s break down the key levels to watch by drawing an anchored volume profile from December 2023, when Bitcoin saw a two-month consolidation before a parabolic run. Currently, Bitcoin is trading in an “air pocket,” indicating low trading volume since December 2023. This suggests a lack of trader interest in this area, which means Bitcoin could behave in a choppy manner before testing key interest areas.

Key resistance levels ahead are:

  1. Daily 200 EMA: Approximately $58,180
  2. High Volume Node: Approximately $60,300 – $61,300
  3. Daily 20 EMA: Approximately $60,374

Key support levels below are:

  1. Moderate Volume Node: Approximately $52,500 – $51,000
  2. Moderate Volume Node: Approximately $47,500 – $46,850
  3. High Volume Node: Approximately $44500 – $43,000
  4. Point of Control (Highest Trading Volume): $42,223.96

Depending on how Bitcoin reacts at these levels, we may acquire a fantastic short-selling or long trade opportunity. Until then, it’s advisable for traders to remain patient and wait for a clear reaction at these zones before entering a swing trade. For now, Bitcoin may remain choppy due to being in an “air pocket,” with movements primarily fueled by trading algorithms until a bigger player steps in.

Fundamental Factors: Fed Chair Powell’s Speech Today

We must also keep in mind that Chair Powell is testifying today about the Semi-Annual Monetary Policy Report before the Senate Banking Committee, in Washington DC.

The timing is as follows:

  • 2:00 PM UTC
  • 3:00 PM UK time
  • 10:00 AM New York time

If Chair Jerome Powell maintains a hawkish stance, it could spell bad news for Bitcoin prices, as well as for the stock market and currencies paired against the dollar.

You may also be interested in:

BTC May Drop to $52K (July 4th Analysis)

Disclaimer: For educational purposes only. Trading comes with substantial risk, leading to possible loss of your capital. Traders are advised to do their own due diligence before investing.