After yesterday’s somewhat disappointing tumble from what is beginning to look like a strong USD 13,000 resistance level, Bitcoin has traded in a relatively conservative range of USD 800 for the past 24 hours.
After checking it at a high of USD 11,801 just at the close of Central and Western Europe markets, it then proceeded to swing all the day down for a plunge to USD 11,011 at the close of Eastern Standard Time US, before Asian buyers dragged up price to its current levels close to the daily high at USD 11,667 (11:30 am UTC, CoinDesk).
The profit taking scenario presented by yesterday’s opportunities certainly played out, with North American traders at least taking regular profits above USD 11,000. However, it seems that traders on the other side of the Eastern hemisphere did not mind, as it presented perfect re-entry levels amid a broad charting pattern that is still slightly suggestive of possible breakouts or t least sustained rallies for the medium term.
Altcoin markets are also experiencing minor relief, with every coin save 3 in the Top 30 (ChainLink, Tezos and Maker) by market capitalization registering positive growth, as the total market capitalization for crypto rises to USD 319 billion (CoinMarketCap). It won’t be enough, though, as altcoin traders will be licking wounds from the horrendous week against BTC pairs, so there will likely be artificial pumps by some projects in an effort to boost flagging spirits in the altcoin camp.
Pullback Over? Bitcoin Bounces $600 From Historically Strong Price Support
— TECHISH (@techish) July 12, 2019
BitcoinNews.com technical analysis certainly confirms that the 15% drop of yesterday served only to satisfy the appetites of “greedy buyers”, but notes that there is still a certain weakness in buyers that sellers are sensing throughout the week. Nevertheless, the fact that BTC/USD repeatedly is able to overcome robust resistance does mean that it has no issues getting past technical hurdles, even without the support of retail or institutional investors.
Other analysts now, though, are wondering if it wasn’t just that the US Federal Reserve chose to attack crypto, but the figurehead of US politics. Now, President Donald Trump is the latest scapegoat, with his latest Twitter comments against Bitcoin being revived. Trump said:
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity… We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
It’s relevant to note that his search popularity online has already lost out to Bitcoin, at least, according to Google Trends. One would think he wouldn’t have held it against the digital asset, though, and realized that it was the US dollar that has most facilitated unlawful behavior!
Donald Trump Not A Fan Of Bitcoin; Is This The Reason For Bitcoin Price To Descend? – CryptoNewsZ https://t.co/h5djsfAKRR
— Crypto by Devvie (@devnullius) July 12, 2019
What is once more exciting to see, however, as we do most Fridays, is how the weekend activity will affect Bitcoin price, with the trend since April leaning towards a majority of bullish action. The last weekend was a rather sleepy one comparatively, and bulls will feel that if they allow another low-activity weekend to happen, it will give out the wrong signals for the market.
For the time being, it does appear that a 24-hour stay above USD 11,000 has been successful, so fans of daily consolidation will see this as confirmation of strong support at this level. But this also happened last week, only for steady gains towards USD 13,000 to be wiped out in a day of profit taking.
Whatever the picture for the coming days and weeks, people are still to be found repeatedly calling these levels of price “lite” and using the opportunities to accumulate as Bitcoin consolidates en route to its all-time high close to USD 20,000. Of course, shorters and speculators won’t mind one bit for this to happen again and again, if it means steady 10% or more profits every week.
Those whose eyes are on the longer term picture, however, have not lost sight of the eventual goals. Fundstrat analyst Tom Lee, for example, has advised people to take a moment to reexamine the situation and remind themselves that the long-term frames on Bitcoin still remain the same, even with the current pullback. He insists that the pullback yesterday is “invisible on weekly timeframe” and that the “crypto winter is over“.
It is a familiar mantra for him and others, and many will be hoping that he proves to be right.
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