In this segment, we will analyze bitcoin movements during June, their projections, and the possible bitcoin price in July 2020. 👇
Projection and price of bitcoin in July 2020: macro analysis within the context of the global pandemic
As tools for this analysis, we will continue to use the daily, weekly, and monthly time frames. This will give us a proper macro perspective on the bitcoin price in July, for both swing traders and investors looking to have long-term market exposure.
Monthly bitcoin price chart (1M):
In this opportunity, we will be able to analyze the price of Bitcoin after its third historical halving, which occurred on May 12, 2020 and which among its most notable effects, we can mention, a reduction of the reward from 12.50 BTC to 6.25 BTC for each block mined.
In the monthly time frame, bitcoin closes at $9,130 for the month of June, after being strongly rejected by the $10,500 block mentioned in our last report.
During the month of June, the digital asset did not experience as much volatility as in April and May. After oscillating for a few days between $ 9,300 and $ 10,500, Bitcoin falls below its previous resistance again. However, in the monthly time frame, it appears that this bearish move has not ended.
Weekly bitcoin price chart (1W):
On the weekly chart, we see how Bitcoin has closed negatively for the past 4 weeks. Technically it is aimed at testing its support around $ 8,700 (May monthly open). This level was respected by the bulls 🐂 during the month of May and should act as a support, if the price revisits it.
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If Bitcoin fails to hold $ 8,700, the odds of it visiting $ 7,700 or the annual opening at $ 7,160 are pretty high. Leaving a single ‘gap’ between those levels, which was created by April’s boost of more than 30%.
Daily bitcoin price chart (1D):
At the time of writing this report (July 3, 2020), Bitcoin is at a critical level for the asset. Weeks after halving, we note that the bitcoin price has created a symmetrical triangle pattern, which has supported the bitcoin price for some time.
If we zoom in on June 27, we note that Bitcoin managed to hunt down the bears after crossing the support at $ 8,900 for a few minutes, to visit its previous support at $ 9,250 which acts as resistance for the asset.
In our previous report, we mentioned how this type of movement tends to happen for both directions and traps many escape traders who want to take advantage of a resistance or support break. An example of this was the aforementioned break of $ 10,000, which did not take long to visit the $ 9,100 after having generated liquidity by hunting the bulls.
As always, Bitcaribe reminds all market participants of the importance of continuing to use their risk management systems to the letter, while macroeconomic conditions stabilize. We know that despite the economic openings in different countries, the situation in the United States does not seem to improve with respect to the coronavirus, and the protests and riots generated by the George Floyd case and the recent death of a U.S. citizen in the United States.
Despite the negative news that continues to bombard all channels, the price action of the major stock indices and Bitcoin has shown incredible resilience.
An example of this is NASDAQ, which is already above its historical highs and seems to want to continue its bullish movement in recent weeks. European indices such as the IBEX 35 also continue to recover but at a slower pace.
Finally, the injection of liquidity by the financial institutions of each country, to try to keep their respective economies afloat, represents an incredible opportunity for Bitcoin as a digital asset that seeks to help safeguard the world from the financial crisis that it faced before.