Bitcoin price weekly analysis 16 July: The fight between the BTC bulls and bears is on in earnest
Bitcoin has spent most of the last week trading in a narrow range as the bulls try to break the bear stranglehold.
- Bitcoin is holding within a relatively narrow range as bulls fight against bearish sentiment.
- Market participation remains low as volumes are subdued.
- Institutional traders are making serious moves into cryptocurrency markets.
Bitcoin started the last seven-day trading period at around the $6,700 mark before falling sharply last Tuesday to the $6,400 level. Since then, it has traded in a relatively tight band between $6,200 and $6,400, although it has slowly worked its way to the top of that band since Saturday morning.
It's broken out of that band in the last few hours, reaching $6,500, but it's not clear whether that's going to be sustained.
Trading volumes over a 24-hour period have been between $3.4 billion and $3.9 billion for most of the week, which represents a quieter market than the last three months when 24-hour trade volumes in excess of $4.5 billion were common.
Over recent months, it's become clear that institutional traders would become more interested in cryptocurrency and new reports suggest that's coming. FXStreet reports that BlackRock, the world's largest asset manager, is looking into the benefits of the cryptocurrency market and where they might find some opportunities.
A look at the long-term price movement for BTC shows that there was a steady fall over the last few months that was arrested with signs of a reversal commencing about two weeks ago. News BTC's analysis finds that the 100 SMA (simple moving average) is starting to cross above the longer-term 200 SMA. This suggests that bearish momentum is over and that the path of least resistance is to the upside. However, they note that there is still some downward pressure which explains why we're not seeing a massive breakout and a more measured market reaction.
They also note that the market is holding on and not letting the price dip below $6,000 any time soon.
Perhaps the best indication of what's going on in the bitcoin market came from Stock Gazette today. In the one analysis, they said "overall market price outlook for BTC and altcoins appears weak" and that "Bitcoin returned to a bullish sentiment and chart patterns indicate an uptrend". As I said a few weeks ago, the outlook is that things look good unless they don't.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.