In the early American session, Bitcoin is trading at around the psychological level of $30,000, after having broken the level of 2/8 of murray. The price is located below it and there is a risk of a fall towards the zone of $28,125 or 1/8 murray.
BTC price is moving to the key support level of $30,000. At present, the cryptocurrency is trading in small volumes. At the fundamental level, Bitcoin is still in its recovery phase.
On the other hand, BTC mining firms are facing headwinds as financial watchdogs worldwide are tightening their stance on the crypto industry that accounts for smaller mining volumes. In particular, this occurs in response to the ongoing mining migration out of China caused by a major crackdown on cryptocurrency mining by local authorities. This is also causing BTC to remain under pressure and this consolidation phase is likely to continue.
In view of the fact that BTC has no fundamentals to aid its recovery, we believe that if BTC trades below the $ 30,000 level, it could continue its bearish cycle to the 28,125 zone in the short term.
Conversely, a break above the 21 SMA and a consolidation above the 2/8 murray will be a good opportunity to buy with targets at the 200 EMA located at $34.114.
The eagle indicator is showing a bearish signal, which suggests that BTC is still at risk of a drop towards the 28,000 zone.
Support and Resistance Levels for July 19 - 20, 2021
Resistance (3) 33,534
Resistance (2) 32,244
Resistance (1) 31,645
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Support (1) 30,354
Support (2) 29,662
Support (3) 38,710
The material has been provided by InstaForex Company - www.instaforex.com