Bitcoin Analysis: Trend reversal confirmed as 43% miners support Segwit2x

Bitcoin prices rallied on Monday as 43% of the miners signaled support for the scaling proposal Segwit2x. This came as positive surprise to traders since miners weren't expected to show support until July 21. BTC/USD on CoinBase broke above the 100-DMA level of $2065 yesterday and closed above $2197.79 (38.2% Fib R of $900-$2999.99).

A minor dip to $2134 seen earlier today has been quickly reversed and the virtual currency is now chipping away at the resistance offered by the 10-DMA level of $2243.

As per coinmarketcap.com, Bitcoin has gained 10% in the last 24 hours. Ethereum is up 12.53%. Ripple has gained 10.29%, while Litecoin has added 3%. The total market cap stands at $78.9 billion, while the Bitcoin Dominance rate is 46.8%.

Technicals

Resistance:

  • $2223 (4-hour 50-MA)
  • $2293 (head and shoulders neckline resistance)
  • $2383 (4-hour 100-MA)

Support:

  • $2197.79 (38.2% Fib R of $900-$2999.99)
  • $2050 (June 15 low)
  • $2000

4-Hour chart

Daily chart

Observations

  • Falling trend line breached on the 4-hour chart
  • Spinning bottom and a bullish follow through on the daily chart
  • Big jump in volumes on Monday
  • RSI challenging the downtrend line

Comments

The bullish reversal confirmation indicates the dips are likely to find new buyers unless the virtual currency breaks below $2000. However, the 10-DMA is still sloping downwards, thus break above $2300 is likely to be short lived. We are likely to witness sideways trading today with a positive bias.

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