Disclaimer: The conclusions of the following analysis are the sole opinion of the author and should not be considered investment advice.
In the first few days of July, bitcoin [BTC] Traded low at $18.8k. Over the past two weeks, and in particular the past week, bitcoin has posted steady gains.
Bitcoin faced some resistance at $24.2k, with further resistance in the $26.7k-$27.1k area. USDT has reached an area of dominance chart support and a rally is likely.
Such a bounce would be a sign of selling pressure across the market, with market participants increasing their USDT holdings. News of Tesla selling 75% of its BTC holdings also hit the market bearish in recent hours.
BTC- 1-Day Chart
The longer-term price charts have shown a decisive decline for Bitcoin since December 2021. Bitcoin had formed a year long range of $29.5k to $65k. In June, the price fell below the low level.
The trend is still not strongly bullish even though the past week saw a strong bitcoin rally that broke the lower highs of $23k and $22k. Too much choppiness could be just around the corner, which means risky trading positions.
Nevertheless, it should be highlighted that a breakout of the lower highs means that Bitcoin has a bullish structure and could rally higher, provided it can defend the $22k area. Hence, this area will be worth visiting.
argument
The Relative Strength Index (RSI) moved above the neutral 50 line and past 60 before a retrace. This suggests that the momentum may shift in favor of the bullish on the daily time frame.
It is also associated with the breakdown of the market structure. If RSI managed to stay above neutral 50 and B T c can do protect $22k-$22.3k area, it was possible that the price would climb higher.
On-balance volume (OBV) has been on a consistent downward trend since April. The rally of the last two weeks only brought OBV to the resistance level. This was not encouraging, as OBV needed to break higher levels to indicate stable demand and an upside.
Directional Movement Index (DMI) showed strong uptrend In progress, the response to the rally of the last two weeks. ADX (yellow) and +DI (green) were above 20 points.
conclusion
Indicators are trailing the price but showing an uptrend.
Buying volume was still not heavy, and a breakout in the OBV resistance would be a welcome sight for buyers. $22k-$22.3k was important helpAnd if defended, another leg may be raised.