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Bitcoin (BTC) Price May Rally, Market in Heavily Oversold Territory

Bitcoin (BTC) Price May Rally, Market in Heavily Oversold Territory

Nick Cawley, Senior Strategist


What's on this page

Bitcoin (BTC) Price Outlook, Chart and Analysis:

  • CCI indicator highlights oversold nature of the market.
  • Retail remain heavily long of Bitcoin – are they right?

IG Client Sentiment Data shows how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Bitcoin (BTC) trade data shows 78.7% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment give us a stronger bearish contrarian trading bias.

A Guide to Day Trading Bitcoin and Other Cryptocurrencies.

Bitcoin’s recent heavy sell-off has left the cryptocurrency in heavily oversold territory, according to the CCI indicator (bottom of the chart), leaving the market open to a short-term upside rebound. The July 2 spike-low at $9,640 remains in place for now, and if this remains the case a move back to $10,800 before $11,470 and the recent double-top around $11,900 cannot be discounted. The 50-day moving average, just under $10,000, also remains supportive if it survives a re-test. A decisive break lower could see a re-test of a cluster of trades between $8,600 and $9,600.

Bitcoin (BTC) Daily Price Chart (February 2018 – July 15, 2019)

Bitcoin’s Market Dominance Increases as Alt-Coins Fall Sharply

Bitcoin’s market dominance continues to increase and currently stands around 66% after the latest, sharp sell-off in the rest of the cryptocurrency market. No other alt-coins has a market cap in double-figures with Ethereum (ETH) having a market dominance of 9.24% ahead of third-placed Ripple (XRP) with 4.56%, according to data from CoinMarketCap.

Bitcoin Market Dominance – One Year Chart

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at or via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.