All eyes are on the $64,350 mark for Bitcoin’s July close. An analyst with Krown has put forward the view that this is where a macro bottom may be forming, and the numbers from the tape seem to bear it out.
Why $64,350 Matters for Bitcoin in July
For the time being, the leading cryptocurrency is at a crossroads. The Krown analyst makes the case that a close above $64,350 in July is no small matter; it could well be the sign of a bottom. There is some precedent for it: in the past, once Bitcoin has lost and then regained the 55 EMA on the monthly, a lull in price has typically followed before things pick up again. It is a setup that has not gone unnoticed by those in the market.
Key Technical Indicators Support the Bullish Case
According to a Krown analyst, the monthly stochastic oscillator is set to make an upward cross for the first time in over a year if the July close for Bitcoin comes in at or above $64,350. Combine that with a MACD that is recovering from a long decline, and it makes a strong case for a significant bottom being in place. Traders have a habit of looking to these kinds of signals when they are hunting for a shift in the market.
In the near term, the price is holding up well above the Revan Ribbons mid-band of $64,466. It is a good sign, but as the analyst is quick to point out, a break below that level would be cause for concern. For now, those in the market are taking a measured, if somewhat hopeful, view of the technicals.
Market Strategy and Upcoming Events
With the July close for Bitcoin being of such consequence, Krown’s analyst is of the view that shorting is not advisable for now. There are a couple of big things on the horizon to keep an eye on: the Fed’s decision and what comes out of Apple’s earnings, both of which have the potential to rattle the markets. It is best for traders to be on their guard and handle risk with care.
On the options side, the analyst has been working a strategy of offloading some calls at the $66,500 mark while bidding for some Bitcoin at the right price. It is a way of hedging a bit of caution with the conviction that there is room to move higher.
Source — Krown: https://www.youtube.com/watch?v=gTGN2FBE35w
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