Bitcoin broke the recent downtrend on the daily chart on Friday, Jun 29. This week, the bulls supported the last weekend bullish rally. How far can this rally continue? What are the possible targets? How can we trade this? Is this a relief rally before we continue the downtrend till we hit lower levels at $4,970 levels? In this article, we try to answer these questions. We expect the current move continues in the following weeks in July. We observed good volumes and the OBV oscillator on the daily chart broke the overhead downward trend line which indicates a bullish scenario for bitcoin and cryptocurrencies in July. There are some rumors on social media. 85,000 Bitcoin has been transferred from a wallet. The rumors say it is the wallet of a Chinese whale who wants to sell his holdings in the bullish market. It makes sense, sell when everyone is buying. Smart traders won’t trade all single ups and downs. They wait till they find a good entry. Good trades can be found by studying the significant resistance and support levels

In the bearish viewpoint, BTC has support at $6,250 – $6,500 levels. Just below it, we have $5,750 – $6,000 levels as the current market structure. Retesting this area again is a bearish signal and it indicates that bears are insisting to break it. Usually, the market structure shouldn’t be tested more than three times in a bearish market. So, if BTC goes down to that level again for the fourth time, it is less likely to hold. The $5,750 is the 21-bar moving average on the monthly chart. It is usually a strong support and indicates a good buy opportunity. The monthly candle for June closed above it and I won’t be excited for a bullish reversal as long as the monthly candle in July is below $7,777.