July was a very eventful month for Bitcoin. We saw the cryptocurrency move from a ranging market to a bullish one, breaking through that converging triangle that as been holding price back.
Now, Bitcoin is currently resuming that long term bullish trend it as been on, and I expect this bullish move to continue throughout August as the cryptocurrency gathers more momentum and breaks through the few final resistance still holding price back.
End Of Month Analysis And My Outlook For The New Month
Today we saw the close of the most bullish monthly candle since the end of the 2017 bull run. This monthly candle closed above the $11,000 resistance region, signifying that Bitcoin as officially come out of its sideways movement and entered into its mega bullish cycle.
This bullish cycle has been known to bring about “violent impulsive moves on Bitcoin in the past“, and I expect this cycle will return soon as we see the Bitcoin price push higher into regions with very low trading volume.
This exact kind of price pattern occurred in 2017 before the massive bull run started and I believe it is happening again, and we might see that Bitcoin bull run repeat itself very soon.
Important Levels To Watch
The most important level I am currently watching to see how Bitcoin interacts with it or if Bitcoin will be able to break through it is the $14,000 resistance level.
This level is so important because the Bitcoin price got to this level and made an all-time high during the 2017 bull run before reversing. And since then, Bitcoin has been unable to breakthrough.
I expect the $14,000 level might prove a little bit difficult for the Bitcoin price to breakthrough especially since most bear traders will use that region as the price point for their last stand to try and push the Bitcoin price back down.
What Do I Expect Price To Do?
It is important you remember that this is a monthly chart and therefore my analysis on this price action is a long term outlook on the Bitcoin market.
With that being said, I believe that if Bitcoin is unable to decisively break through and close above the $14,000 support in the coming months, then we might see a slight retracement in the Bitcoin price.
However, if Bitcoin remains very bullish all through August and breaks through this all-time high resistance, we can expect to see the Bitcoin price spike up to the $20,000 region or even higher very quickly.
This break will also open the way for the Bitcoin bullish rise to the $100,000 level.
I believe Bitcoin as the potential to get to this level and I predict we will get to in a few months or years, especially now we are seeing much more adoption of cryptocurrencies and Blockchain technology worldwide.
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