Bitcoin has formed lower highs and lower lows on its daily time frame to create a descending channel pattern. Is the worst over yet? What does the 26 July BTCUSD Price Technical Analysis show?
25 July, AtoZ Markets – Bitcoin is trading at $8,185, off the multi-month high at $8,488. The coin has lost 1.5% on a daily basis and gained 0.3% since the beginning of Thursday amid healthy correction from an overbought territory.
Tom Lee says we have passed the bottom
At the same time, crypto volumes – digital currencies changing hands – on exchanges have seen a spike in activity. And bitcoin bull Tom Lee, head of research at Fundstrat, believes that we have received a strong signal that the worst is over.
“It’s more evidence supporting a bottom,” he said in an interview with Business Insider.
“A few weeks ago when bitcoin started to rally, skeptics dismissed the move saying there was no volume. Now we have massive jumps in volume,”
26 July BTCUSD Price Technical Analysis
On the intraday level, BTCUSD is supported by 50-SMA (1-hour chart) at $8,187. Once it is broken, the downside may be extended towards 50.0% Fibo retracement at $7,862, followed by 200-SMA at $$7,800.
On the upside, $8,354 (61.8% Fibo retracement) remains the ultimate goal, followed by recent high at $8,488 and $8,500.
BTCUSD, 1-hour chart
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