July Dump: Bitcoin May Close With Gains For the First Time in Four Months

Bitcoin is enjoying notable price increases as at the time of writing. It peaked at $24,676 which means it was heading for the $25k resistance but stopped in its tracks. This is one of the many times BTC has tried flipping the level and failing.

Nonetheless, the notable change in price is undeniable as the apex coin continues to poke at the said mark. Since the start of July, we may conclude that the asset was on an uptrend as it opened at $19k and is worth $23k as at the time of writing.

So much has changed over the last 30 days. Before diving into that, let’s look at some news that made rounds during the period under consideration. One of the biggest took place last week when Tesla announced its sales of 75% of it Bitcoin holding.

Another state in the U.S. is accepting donations of the apex coin, which also spells good will for the coin. Lastly, Bitcoin S2F model creator tells investors to be rest assured as the asset is sure to hit $30k within the next two months. All these announcements had their impact on BTC. One such is a big change in indicators.

MACD Maintained Its Uptrends

One of the most trusted indicators is Moving Average Convergence Divergence. The metric consists of two lines that depict 12-day EMA and 26-day EMA. For the most part of the past three months, they were both on a downtrend.

This started to change during the last seven days of June as both lines intercepted and separated to form a bullish divergence. The trend continued into the present thirty-day period as both EMAs recovered from a bearish convergence.

Following the recovery, the subsequent price increase saw MACD continue its upward trajectory. Although there were other close calls, the bulls managed to avert a bearish divergence which may be an indication of more downtrends.

There is more good news when we take a closer look at the weekly chart. Since April, the indicator has been on a downtrend which also described the state of the entire market. As a result of the consistent price decrease, the metric bared no light.

However, this is about to come to an end as we observe that both the 12-day and the 26-day EMA have intecepted. Very soon, the coin may experience a bullish divergence which may indicate the continuation of the current uptrend.

Bitcoin Trades Above its Pivot Point

The Moving Average Convergence Divergence is not the only indicator that experienced notable changes in its trajectory. Although the indicator does not move like the previous one, it shifts positions to accommodate the prevalent trend.

Judging by the previous month, the pivot point was above the current price. As a result, BTC was trading below its first pivot support. Based on the rules governing the metric, the asset under consideration is bearish.

This changed as the pivot point moved down to accommodate the current trend. Although bitcoin spent most of July below it, it exchange closer to the mark than in previous times. Recently, it surged above the said mark.

A look at the weekly chart also reveals that BTC is also making gains as well. We observed that it is edging towards testing and flipping its first pivot support. The month is over which indicates that we may see more action during the next 30-day period.

Relative Strength Index Reached a Peak

The Relative Strength Index also experienced the same sentiment as the previous indicators