Bitcoin analysis: finally another green month (+17%)

Last Updated: 1 August 2022

Bitcoin closed the monthly candle of July last night. It was a positive day, with the currency up 17%. This is again the first green month since March, so what can we expect in the long run?

First green candle in months

To have a look at the candle, we take the monthly chart, where each candle represents one month. As you can see in the chart below, the last one didn’t close in red but in green.

Moreover, we can see that this happened at a very crucial spot; the all-time high of 2017. It happens more often that previous highs are supported, making this a logical prediction. Bitcoin held strong, which is why we are now back at a price of $23,000. This is a relief compared to the previous month.

Bitcoin is finally making a green monthly candle at this important spot. The price found support here and rose 17%, making it less likely that we will drop below the pink zone. The overall picture is finally looking positive again.

Of course, it could happen that the currency drops below the pink zone, but as long as no weekly or monthly candle closes below it, we can remain hopeful. Support has held strong.

Bitcoin moving up

To be able to say a little more about the upcoming bitcoin price, let’s look at the daily chart. This shows the same pink zone as in the top chart (support all-time high 2017). In addition, a blue resistance zone and the current trend are also indicated here.

As you can see from this chart, bitcoin is on an upward trend. The price is making higher highs and higher lows on the daily chart. This is creating an upward trend, but it cannot last forever.

This trend will probably stop at the blue resistance zone. This is because it is the first major resistance if bitcoin continues to rise. It does seem that bitcoin is going to do this at ease. The price has just made a higher high, making it likely that we will now make a higher low.

In addition, we can still hope for one ultimate scenario: bitcoin breaks through the blue zone. Because if this happens, then a price of $30,000 is very realistic. However, I would like to wait to discuss this scenario as the resistance zone is only around a price of 28,000. Let us first hope for a higher low.

Author

  • Florian Feidenfelder is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.

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