The Bitcoin (BTC) price broke out of a month-long consultation on July 19th, with a bullish breakout from the R380.5K-R336.7K resistance zone. Since then, the price has been in a retest phase, with pullbacks to the R336.7K level. This flipped support may serve as an ideal launchpad to drive prices upward.
From mid-June to mid-july, the BTC/USDT pair consolidated between the R380.5K and R318K barriers, showing market uneasiness. However, the altcoin experienced a big influx earlier this week, breaching the overhead resistance (R380.5K).
Furthermore, the breakout rally hit a high of R407K due to an increase in volume activity. Furthermore, the coin chart displayed an instantaneous reversal accompanied by low volume activity, signalling a retest of the previously breached R380.5K-R370K barrier.
The lower volume during the retest phase emphasizes that traders are less interested in entering a short position, giving buyers an advantage. Today, the BTC price is up 1.2 % and remains above the flipped support.
If the volume activity on this green candle increases, purchasers will have a good signal to continue the bullish comeback.
The prospective rally should break through the R404K resistance and soar 15% to the R437K mark.
While the situation appears to be favourable for buyers, a daily candlestick closing below the R370K support would call the breakout thesis into question and might send the coin price back to the bottom support of R319.9K.
EMAs: The 20- and 50-day EMAs substantially influence BTC price behaviour. While the 50-day EMA limits the possible rally’s ability to go higher, the 20-day inverted support precludes a significant correction. Buyers would have an advantage, though, if the anticipated rally managed to retake the 50 EMA.
RSI indicator: despite a modest correction in price action, the daily-RSI slope remains above the neutral zone, indicating that traders are hopeful about Bitcoin’s comeback.