Key Bitcoin Price Levels for the Bulls

Towards the end of July, the price of Bitcoin closed below a crucial support level, despite omnipresent buying activity. Is Bitcoin set for further declines amid growing selling pressure?

Daily time frame analysis

BTCUSD - 1 Day Time Frame

At the beginning of July, Bitcoin's price fell below a key external low, gathering enough liquidity for commercial market participants to leverage the subsequent bullish move. This move broke the internal level of the bearish corrective structure, confirming buying positions for small speculators.

A new support zone was established, but the price closed below it yesterday. This is acceptable, as the zone itself is in the premium area, above the 0.5 Fibonacci level of the impulsive move.

This suggests an accumulation of stop loss orders below the low formed before the price left support.

The support zone on the weekly timeframe, shown in blue on the attached chart, remains crucial for maintaining buying positions.

If the price closes below this zone, it will be necessary to sell part of the buy positions, while the remaining positions can be held until the price closes the last support zone on the daily timeframe.

If the price stays above the support zones, positions can be held with targets on the internal and external buy-side liquidity levels, and potentially the All-Time High (ATH).

Key points to watch

1. Support Levels: Critical support zones on both daily and weekly timeframes.

2. Indicators: Fibonacci levels, liquidity accumulation zones.

3. Action Plan: Partial sell-off if the price closes below the weekly support zone, hold remaining positions above the daily support zone.

Monitoring these support levels and market indicators will be crucial in navigating the potential short-term decline in Bitcoin's price. Maintaining a strategic approach will help mitigate risks and capitalize on future bullish moves.