Bitcoin [BTC] July flame sweeps. It is a recovery around the corner

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

Over the past 24 hours, $198 million worth of positions have been liquidated in the cryptocurrency futures market, according to data from Coinglass. Of this amount, $30 million can be attributed to bitcoin pairs.

With BTC unable to hold the $20k mark, can the bulls expect some relief in the next few days? The price charts showed that the key resistance level, if it turns into support, could pave the way for further gains.

BTC – 4 Hour Chart

Source: BTC/USDT on TradingView

On the 4-hour chart, two levels of significance are identified. One of them was early July support at $18.6K. The other was the resistance level at $19.5K, a former support, which kept the bears at bay in late August.

Over the past few days, Bitcoin has fallen just below this support level and at the time of writing, it is rising towards that level again.

The RSI was not above the neutral 50 level to indicate bullish momentum. At the same time, OBV was also in a steady downtrend. The lack of demand is likely to contribute to the decline at the level of 19.5 thousand dollars.

BTC – 1 hour chart

Bitcoin Sweeps towards July Lows, Is Recovery Near?

Source: BTC/USDT on TradingView

On the hourly chart, a set of Fibonacci retracement levels (in yellow) have been plotted based on the decline from $20,490 to $19797. The instrument drew the 61.8% and 100% extension levels at $19022 and $18676.

Over the past few days, both of these levels have acted as support and resistance. This confirms its importance.

At the time of writing, BTC is trading below the $19,369 mark and is also inside the resistance area marked in red. This resistance area between $19.2K and $19.7K acted as a demand area in June and July.

conclusion

Can Bitcoin Traders Expect a Move Above $19.5K or Below $18.6K? Convincing arguments can be made for both scenarios. From $19.2K to $19.6K, a resistance zone can be expected. Still, due to bouncing back from the flames in the final hours, he moved towards 19.6 thousand dollars and 20.8 thousand dollars It may be possible to increase liquidity.

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