We are approaching the end of July with another positive week that leaves us with a monthly result in $BTC close to +20%, in a recovery movement within the downtrend that we have been dragging since last year, as we can see in the chart.
Last week I commented on a triple bottom figure that had been confirmed with the high at $24.2k, but was performing a pullback movement, which was stopped last Tuesday at $20.7k to subsequently generate a bullish retracement that has taken the price back to the $24.2k resistance.
This movement can be seen more clearly in the 4h chart, in which I have plotted the Fibonacci extension that sets the 1,272 level at the $24k resistance, but in the case of a bullish breakout could reach the 1,618 level at $26k or even test the support it lost at $28k. We must remember that we are still within an annual downtrend.
Taking advantage of the fact that it is the end of the month, I wanted to make an update of the tokens that we have analyzed in recent weeks, to study their evolution and propose new scenarios.
First of all, I would like to comment on $MATIC, the Matic Network/Polygon token that we analyzed at the end of June. (I leave the link below)https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8088989368214562112&li_theme=light
In this post, we commented on the formation of a Shoulder-Head-Shoulder figure that could generate a bullish move against the main trend.
If we look at the chart, we can see how the price after reaching the target of the technical figure, makes a rejection to the support of $0.43 and then generates a bullish reversal that manages to break the resistance and closes the month with a profitability of +90%.
If we draw the Fibonacci extension of this move, we see how the price has reached the 1.618 level at $0.98 which is currently acting as resistance.
The support to take into account is located at $0.72, if we see lows below this area, it could activate the main downtrend and generate a downward movement. But as long as this breakout does not exist, we will have to be attentive to the evolution of the price over the current resistance, because if it manages to break upwards the $1 barrier, it can go to the 2.618 level at $1.20.
Another token we have analyzed is $SAND, the token of the metaverse “The Sand Box”.
Link to the July 10th analysis:https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7869029562085036535&li_theme=light
In the analysis of $SAND we identified a break of the accelerating downtrend and commented that a bearish divergence was developing that could generate a short-term bearish move.
If we look at the updated chart, we see how this divergence generated a movement of rejection of the support at $1.06 and then a bullish replica that led the price to the resistance at $1.52, which is the area to beat, in order to see new upward movement.
Currently we can detect a trend of bullish lows, but they fail to break the resistance zone, so we will have to be attentive to see if it consolidates the micro uptrend with a break of resistance or if they begin to generate declining lows that would invalidate this trend.
Finally, I would like to comment on $ENS, the Ethereum Name Service token that we analyzed last week.
Link to the July 24th analysis:https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7446248948532960990&li_theme=light
In last week’s analysis we saw the bullish breakout of the wedge and commented on the resistance at $14 as an area to watch for a possible trend reversal.
We can see how this resistance at $14 has been overcome, but with a move without much trading volume that reached $16.50 and at the moment has met resistance at the downtrend line.
Therefore, a pullback move to $13.50 or even the uptrend line would be likely.
If there is a bullish reversal, the next target is at $18 and as main support we have the lows at $7.50/$8.
Finally, remember that nothing in our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team, we only show our analysis and investment tools and how they help us in our operations when making decisions.