Bitcoin, and other altcoins like BNB & EOS are showing bullish technical analysis setups that could attract buyers as the broader market starts a recovery rally this week. The S&P 500 ended its four-week rally last week minutes after the July Federal Reserve meeting indicated that the central bank will continue raising interest rates until inflation is brought under control. A softening in sentiment sent the S&P 500 down 1.29% this week. Continuing its close correlation with the S&P 500, Bitcoin (BTC) also posted a sharp decline on Aug 19th. The volume for the asset is down by around 24% while price is up by 2.3%. BTC dominance is at 40%.
At the time of writing BTC was trading at $21400.
BITCOIN after making the low of $17,622 on 18th June surged almost by 43% within three months and made the high of $25,211. However the bulls failed to manage the grip on the asset as BTC faced stiff resistance around the $25k mark and did not give a daily closing above $24,500. Post this move, the asset witnessed a correction by forming a ‘Lower Top Lower Bottom’ pattern and made the weekly low of $20,761. On a daily time frame, BTC is trading in an ‘Ascending Channel’ pattern. To rally, it needs to give a breakout above the pattern. BTC has a strong support at $20,500, if it holds and sustains the support then we can expect the up-move whereas a break or close below the support will lead to further downfall.
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