BitcoinLong
BTC - Resistance Becomes Support - Bullish Sign
Updated
Look how funny this is. Remember that purple line which acted as resistance at least 4 times over the last few weeks? It's now serving as support, as BTC stopped its recent drop right at the purple line. That's usually a sign that a bull move is going to continue, when a prior resistance becomes support. Let's see how long it holds.
Incidentally, the older rising trendline (blue) recently steepened (green). I'd say BTC is going to continue at this steep angle for a while, especially given the weakening of the Euro (due to ECB stimulus) and simultaneous weakening of the USD (due to expectations of a quarter-point interest rate cut from the FOMC in July). The weakening of these currencies has also lit a fire under gold, which means BTC is behaving a lot like gold, which means BTC is gaining a good reputation as a trusted alternative to money and a viable store of value (like gold).
Support levels look to be around $9300 and $8900 (yellow lines).
Incidentally, the older rising trendline (blue) recently steepened (green). I'd say BTC is going to continue at this steep angle for a while, especially given the weakening of the Euro (due to ECB stimulus) and simultaneous weakening of the USD (due to expectations of a quarter-point interest rate cut from the FOMC in July). The weakening of these currencies has also lit a fire under gold, which means BTC is behaving a lot like gold, which means BTC is gaining a good reputation as a trusted alternative to money and a viable store of value (like gold).
Support levels look to be around $9300 and $8900 (yellow lines).
Note
Oh, and the recent termination of CBOE Gemini bitcoin futures (GXBT) is also bullish for gold, since it has removed a major source of shorting at the institutional level. You might recall that when the CBOE started offering bitcoin futures at the beginning of 2018, the immediate effect was a long plunge in the price of BTC. In fact, you could argue that the introduction of bitcoin futures at large exchanges is what killed BTC at that time, since large players could short BTC with ease. They managed to pocket a great deal of profit as they shorted BTC futures and drove it into the ground.But by Q1 of this year, when they had made as much as they could from shorting BTC futures, volume of futures trading plunged, which lead to Gemini terminating its bitcoin futures; June 19th was the last trading day. Now that this major shorting obstacle has been removed, look at BTC go! The end of Gemini futures isn't the only impetus to BTC lately, but it does help. We can't ignore how BTC started falling when the futures were implemented, and how BTC started flying when the futures were closed. There still are 5x futures contracts available out there, but they're not so hot. There is very little holding BTC back now.
Note
Ooopse. At the beginning of my last comment, I meant to say "bullish for BTC".
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