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Bitcoin (BTC) is currently trading at $7,720. The price is currently around its support level of $7,719. Also, we see a formation of a spinning top at the support, indicating indecision. Looking at the trend, it is suggested to take long position at the current price, keeping support as a stop loss. The support is at $7,719 and resistance at $ 8,214.
According to Dow Theory, the Bitcoin price is in the public participation phase with some minor correction. During this phase, negative sentiment starts to dissipate. As the good news starts to permeate the market, more and more investors move back in, sending the prices higher. This phase tends not only to be long lasting, but also the one with the largest price movement. It is also the phase in which most technical and trend traders start to take long positions.
This phase is followed by the distribution phase, which is represented by the topping of the market where the price movement starts to flatten as selling pressure increases. The correction is temporary and can give opportunity for taking long position.
The price is moving between the channels whilst the channels are expanding, indicating volatility. The Bitcoin price is almost around the lower channel acting as support and we see that RSI is turning flat indicating negative momentum is over.
When taking 9 period moving averages (blue) with 21 period moving averages (red), we can see a bullish crossover but the price is trading below the moving averages, which is negative sign. The risk averse can take long position after the price is above moving average.
Bitcoin (BTC) is currently trading at $7,720. The support is at $7,719 and resistance is at $8,214. Looking at the trend, it is suggested to take long positions but risk-avoiding people can wait for the price to close above the moving averages. The above levels can be used for swing trading. Overall trend is bullish and the correction phase seems to be over. The midterm target is $9,160.