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Bitcoin still in a firm bull market

Bitcoin

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Crypto market was caught in the throes of volatility that have allowed the digital assets to form fresh levels of support and resistance that will likely continue to hold strong in the near future. Despite this volatility, Bitcoin is still in a firm bull market trading at levels of 11,203 USD at 04:00 a.m. ET.

Bitcoin is currently down by 1.7% on the day, after yesterday’s gain of almost 3%. Looking at its weekly chart, however, the coin is down by 5%. On Sunday, the daily trading volume fell below 20 billion USD, for the first time since June 25, a day before the cryptocurrency reached its year-to-date high of 13,725 USD.

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Over the past week, Bitcoin has been forming a pattern of consolidation that has elucidated the cryptocurrency’s current levels of support and resistance, which currently appear to exist at 9,800 USD and 12,000 USD respectively.

According to a recent report released by major cryptocurrency exchange Binance, Bitcoin has become less correlated with other cryptos in Q2 2019 due to a potential “flight-to-quality” in the recent bull run.

In its “2019 Q2 Crypto-Correlations Review”, Binance specified that average correlation between Bitcoin and all other major crypto assets declined to 0.61 from 0.73 in Q1 2019. Correlation rate is a statistical measure that indicates the degree of the relationship between assets, with the values ranging between -1.0 and 1.0. As such, assets with a correlation above 0.5 are considered to have positive correlations, while those below -0.5 are considered to have negative ones. According to the new report, the general correlation among major cryptocurrencies has remained “quite high” in Q2 2019, while Bitcoin’s correlation dropped.

Crypto market recap

Cryptocurrencies are mixed on Sunday with most of them being into the red against the US dollar. Ethereum is down by 1.3% to 288.15 USD, holding onto its position as the largest altcoin by market cap, which currently stands at 30.8 billion USD. Earlier, Ethereum 2.0 researcher at the Ethereum Foundation, Justin Drake, said that Ethereum (might decrease issuance ten-fold by 2021. Ethereum developers reportedly estimate full sharding to happen by 2021, with a few years needed for the ecosystem to migrate to the point proof-of-work (PoW) can be discarded.

Meanwhile, Ripple’s XRP edged higher by 2.9% to 0.3950 USD, making its market cap of 16.8 billion USD. However, XRP is the worst performing Top-10 crypto in H1, gaining only 12.45% for the period.

Litecoin and Bitcoin Cash are marginally lower by 0.4% and 0.3%, while EOS inched higher by 0.4%.

Binance Coin and Bitcoin SV declined on a daily basis by 1.4% each.

The best performer today is Monero, which gained more than 6.9% to 98.21 USD.

The total cryptocurrency market value is down to 320.35 billion USD.

Bitcoin price analysis

This past week, bitcoin price started a strong recovery from the 9,700 USD swing support. The Bitcoin climbed above the 10,500 USD and 11,000 USD resistance levels. The upward move was very positive since the price surpassed the 11,200 USD and 11,500 USD resistance levels. Finally, the price broke the 11,800 USD resistance and the 100 simple moving average.

Finally, there was a break above the 12,000 USD resistance level, but the price failed to continue higher. A swing high was formed near 12,050 USD and the price recently corrected lower. It trimmed gains and declined below the 11,500 USD support level. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the 9,650 USD swing low to 12,050 USD swing high. The decline was such that the price spiked below the 11,000 USD support level.

However, the 10,800 USD level acted as strong support. Additionally, bitcoin stayed above the 50% Fib retracement level of the upward move from the 9,650 USD swing low to 12,050 USD swing high. At the moment, the price is consolidating near the 11,200 USD level and the 100 simple moving average. On the upside, there is a major bearish trend line forming with resistance near 11,700 USD.

If there is an upside break above the 11,700 USD resistance zone, there are chances of a fresh increase. The next immediate resistance is near the 12,000 USD level, above which the price could accelerate towards the 12,500 USD and 12,800 USD level. On the downside, there is a connecting bullish trend line forming with support near 11,000 USD on the same chart. However, the main support is near the 10,800 USD level, below which there could be strong losses.

Looking at the chart, the Bitcoin price is clearly preparing for the next break either above 12,000 USD or below 10,800 USD. As long as the price is above 11,000 USD and 10,800 USD, there are chances of an upside extension above 12,000 USD.