Bitcoin price in July staying below $295 USD, expected to gain later in August

The popular cryptocurrency, Bitcoin, is once again showing signs of a new bullish run toward the strong psychological and technical resistance around $300 USD area. It’s doubtful we will see any significant moves this month, because we only have three more days left. However the overall look on August 2015 is very positive and it’s possible we will break the resistance and price will stabilize above the $300 USD later in August.

Graph of Bitcoin vs USD showing bollinger bands breakout on a weekly timescaleBollinger Bands breakout on W1

The first week of July was a great bullish trading week that managed to break through a very tight Bollinger Bands formation. It’s a clear sign for bigger, more serious moves in the near future.

Graph for BTC/USD price staying under 290 usdBitcoin chart – 1H timescale

We are slowly but surely moving towards a second attempt at breaking the $300 barrier. It’s especially clear on 1H and 4H time frames.

You have to realize that the $300 USD range is a very strong resistance level. Not only because it’s just a nice round number, the last time we were at this level was in March this year.

We can hope it breaks through this time, but in reality it can take up to three retries when the price can finally stabilize above that level.

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Correction in the Bitcoin price and what to expect later this month

Bitcoin price movement up trend breakout chart correction formationI underestimated the market

Guess I have underestimated the buyers potential and also the significance of the recent hidden service raid that FBI conducted earlier this week. Just look at that wonderful green bullish candle :) There’s clearly a connection between the raid and the price movement here because last time FBI closed one of the biggest darknet marketplaces and confiscated millions of dollars in Bitcoins the price skyrocketed exactly the same way just a few days later. After they put those coins out for auction the price obviously fell and now we can see the same thing happening all over again. Will they auction these coins as well? Time will tell.

Bitcoin price market chart overbought market condition correction formingOverbought condition

The RSI indicator is showing that the price has moved over the overbought line. This along with the fact that we’ve had a crazy rally means that a price correction is imminent. How far will it fall? There is a very strong support level around the $380 mark, but I highly doubt it’s going to fall that low. A more reasonable target would be the $410-$420 area, where the price may linger for a few days before we have a better chance at entering a long position again. That being said, there’s no reason why you should close your position right now if you’re aiming for something bigger!

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The long waited confirmation for bullish Bitcoin

Bitcoin price bullish confirmation means to buy more bitcoinsIt’s happening!

First of all check out how well the support level (black horizontal line on the chart) has been holding. The price bounced right back up after hitting it the second time with a significantly lower selling strength. This means that the buyers are slowly gaining strength and it’s well known that all the prices anywhere tend to go up much slower than when they fell. That’s why the bulls are always more patient traders and bears try to bite it quickly.

 

Bullish Bitcoin Price Indicator Confirmation Formation With MACD IndicatorLet’s check out MACD

When we add the MACD (moving average convergence/divergence) indicator to our charts we can see further confirmation that’s the price is likely going to move higher from this point. The previous downward opening was only brief, and we have broken through the barrier, so to speak, and a zero crossover has taken place.

 

And now the fundamentals

 

Maybe you have already heard about the recent fire that took down a major Bitcoin mining operation. tldr; version: huge fire broke out, took down a massive Bitcoin mining operation in Thailand, millions of dollars in hardware got destroyed with no insurance whatsoever. You can read more about it on this page.

 

What does it mean for us? It’s another indicator that the Bitcoin prices may skyrocket due to the fact that the mining operation was significant enough to create a disturbance in the Block Chain. Basically Bitcoins just got much more scarce because new ones are going to be mined at a slower rate at least for a little while. You have to wonder whether or not the fire was an accident or a planned event… they have officially denied that their electrical wiring caused that fire.

 

So long story short: Buy Bitcoins.

 

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