Bitcoin Price Analysis (BTC/EUR) – Breakout from Downward Trend

After a test of the long-term support, the Bitcoin course with two courageous pumps has risen to 5,700 Euros. A large part of the losses of the last two weeks were thus undone. With this pump, the Bitcoin share price rose above the downward trend that has been followed since the beginning of 2018.

The Bitcoin price rose this week

With pumps on June 29th and July 2nd, the Bitcoin price rose above the two exponential moving averages EMA50 and EMA100 as well as the downward trend that has continued since the beginning of the year.

Overall, a neutral price assessment is reached. The most important support is 5,509.57 euros, the first interesting resistance is 5,838.59 euros.

Since yesterday’s market analysis, the Bitcoin price has continued to develop positively. With another pump, the price could now rise above the exponential moving average EMA100. The price almost rose to the plateau, which the price passed through between 18 and 22 June. As before the pump, the price is now moving sideways.

With the described pumps, the price was able to lift above the downward trend pursued so far:

The MACD in the four-hour chart (second panel from above) is positive and rising. The MACD line (blue) is above the signal (orange). The RSI is at 70 and is therefore bullish and even slightly overbought.

Looking at the price, trend, indicators and trading volume, one comes to a rather bullish assessment. The outlook would be completely bullish if the RSI were not overbought. In the short term, a plateaus formation or a slight consolidation is to be expected, in the long run the bullish sentiment could be pursued further.

Support and Resistance

The first support is at 5.509,57 Euro and thus approximately on the level of the EMA100. Another support is 5,272.81 Euros and is defined by the plateau between 21 and 28 June.

The first resistance is 5,838.59 Euros and thus at the level of the plateau between 18th and 22nd June. Should the Bitcoin price overcome this level, another resistance would be found at the level of the plateau at the end of June at 6,190.01 euros.

Entry Points, Stop Losses and Targets
The rather bullish assessment motivates to a long position – you can dare it. Careful ones can use the first Resistance with 5.383, 59 euro as entrance point, riskjoyful ones immediately enter. The first support at 5,509.57 Euros is a stop loss and the first target is 6,190.01 Euros. A second target would be around 6,500 Euros, i.e. at the height of the plateau which the Bitcoin price passed through at the beginning of June.

If the price falls below the first support, a short position is the best choice, where the stop loss is at the level of this first support, the entry point at the level of the EMA50 at 5,444.25 Euro and the first target at the level of the second support at 5,272.81 Euro.