Bitcoin, the world’s leading cryptocurrency, is experiencing a significant price surge, but market analysts urge caution. 

On July 26, Crypto Ed, a prominent trader, shared his insights on the current Bitcoin price action, warning that the recent spike above $67,000 might be an impulsive move.

A Surprising Rebound

Bitcoin has risen approximately 2% since the daily close on July 25, bouncing back from a local low of $63,430. This movement surprised Crypto Ed, who had anticipated a corrective bounce followed by a decline toward $62,000 or lower.

“Bouncing stronger than I was expecting yesterday, looks impulsive,” Crypto Ed remarked in his recent post. He acknowledged the possibility that the market could still fulfill bullish expectations and avoid a downside liquidity sweep. 

“That scenario is still possible, but the strength in the current bounce is starting to look like we have already finished leg 2 and heading to new highs again,” he explained, referencing an Elliott Wave chart that predicts a potential long-term BTC price target of $80,000, followed by a consolidation phase back to near current levels.

While some traders are optimistic, others remain cautious. Cole Garner, a well-known analyst, pointed out that the aggregate spot BTC order book remains skewed to the downside, suggesting a bearish sentiment. “Aggregate spot BTC order book is still bearish. Moar sideways,” Garner predicted.

Anticipation Builds for Bitcoin 2024 Conference

Adding to the market's excitement is the Bitcoin 2024 conference in Nashville, where U.S. presidential candidate Donald Trump is scheduled to appear. Trump's supportive stance on cryptocurrency has fueled bullish sentiment, with some rumors suggesting he might create a U.S. strategic reserve in Bitcoin if elected.

For now, caution remains the prevailing sentiment, with eyes on the $63,500 support level and the potential for Bitcoin to either confirm a bullish breakout or retest lower levels.

Bitcoin 4-Hour Technical Analysis: A Crucial Decision Point

The recent action by the Bitcoin price action on the 4-hour chart showcases significant volatility, with BTC closing at $67,086.0, marginally down from its previous peak. This movement reflects the ongoing tug-of-war between bullish and bearish sentiments in the market.

BTC is trading close to critical resistance levels of $67,157.26, $67,195.1, and $67,224.0. These resistance levels are crucial barriers that Bitcoin needs to overcome to confirm a continued bullish trend. On the downside, Bitcoin finds support at $66,823.63, $66,470.01, and $66,244.48, which have so far held against bearish pressures, providing a safety net for traders.

Technical Indicators Analysis

Exponential Moving Averages (EMAs) indicate a mixed sentiment. The 9 EMA is trending upward, currently at $66,050.06, which shows short-term bullish momentum. However, the 20 EMA at $65,958.20 is slightly lagging, indicating a need for stronger upward movement to solidify a bullish trend.

Meanwhile, the Moving Average Convergence Divergence (MACD) highlights an interesting scenario. The MACD line has crossed above the signal line, transitioning from a bearish to a bullish histogram. This shift suggests growing bullish momentum, but caution is advised as the MACD values are still recovering from negative territory.

The Relative Strength Index (RSI) hovers around 59.48, slightly below the overbought threshold of 70. This indicates that while there is buying interest, Bitcoin is not yet in overbought territory, allowing room for further upward movement without immediate risk of a pullback.

Potential Movements and Trading Strategies

For those looking to enter long positions, a confirmed breakout above the resistance at $67,224.0 could present a lucrative opportunity, targeting higher levels with a stop-loss just below the support at $66,823.63. This strategy would capitalize on the bullish signals from the MACD and RSI indicators.

Conversely, traders considering short positions might look for signs of rejection at the resistance levels, with a potential entry below $67,157.26. Setting a stop-loss just above $67,224.0 can mitigate risk, with profit targets near the support zones of $66,470.01 and $66,244.48.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.