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

Omkar Godbole FXStreet Contributor

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.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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