BTC Creates First Higher High Market Structure. Bull Run Here?
- BTC is up another 3% today as the cryptocurrency creates the first higher high since the mid-May market collapse
- Bitcoin is now up by a whopping 16% over the week
- The latest price hike allowed BTC to climb above the 200-day EMA today
It seems that the cryptocurrency market has shrugged off last week’s US Infrastructure Bill taxation after surging 16% on the week to climb above the 200-day EMA level and create the first higher high structure seen since before the mid-May market collapse.
Bitcoin had penetrated above a descending wedge at the end of July and has since been on a bullish swing higher as it makes its way back toward 50K.
Bitcoin Price Analysis
What has been going on?
Taking a look at the daily chart above, we can clearly see the breakout of the descending wedge formation in the second half of July. Since breaking above, BTC surged inside an ascending price channel in the final week of July to reach the high of around $42,550.
After hitting this high, BTC would then go on to retrace in the first few days of August until support was met at $37,500, provided by a .382 Fib Retracement level. The breakdown of the ascending price channel and the support found at $37,500 is best seen on the 4-hour chart.
After meeting the support, BTC would then rebound higher last week and eventually create a high higher above $42,550 over the weekend. This is the first higher high the market has seen since the mid-May market capitulation. It would push higher over the weekend to hit the resistance at the 200-day EMA.
Today, BTC surged further as it broke resistance at the 200-day EMA to meet $46,090, provided by a 1.272 Fib Extension level. Again, best seen on the 4-hour chart.
This higher high is quite significant as it marks the turning point for the previous downtrend and could possibly be the first signal to suggest that a run toward all-time highs around 60K is incoming.
Bitcoin price short-term prediction: Bullish
BTC would now have to drop beneath the August support at $37,500 to turn neutral in the short term and would need to continue further beneath $31,500 to be in danger of turning bearish.
If the sellers push lower, the first support lies at $45,000 (200-day EMA). This is followed by $42,550 (July highs), $41,622 (.5 Fib Retracement), $40,600 (.618 Fib Retracement), and $40,000 (20-day EMA).
Beneath 40K, added support lies at $39,155 (100-day EMA), $37,500, and $36,660.
Where is the resistance toward the upside?
On the other side, the first resistance now lies at $46,090 (1.272 Fib Extension). Above this, resistance is to be expected at $47,820 (bearish .618 Fib Retracement), $49,460 (1.414 Fib Extension - blue), and $50,000.
If the buyers continue to drive above 50K, additional resistance lies at $50,660 (1.618 Fib Extension), $52,000, $53,000 (bearish .786 Fib Retracement), and $56,0000 (bearish .886 Fib Retracement).
For more fundamental analysis and 4-hour technical analysis, please take a look at our main article here; https://coincodex.com/article/11884/bitcoin-price-analysis-btc-creates-first-higher-high-market-structure-as-bull-run-reignites/
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