Crypto Index analysis: starting to break out
12:12, 24 July 2020
The Crypto Index may finally be ready to break free from its recent period of extended price consolidation, as Bitcoin and the broader cryptocurrency market both appear bullish.
Crypto Index analysis shows that the index could start to rally towards the 60,000 resistance level over the medium term.
Crypto Index medium-term price trend
The Crypto Index looks poised to break higher as Bitcoin prepares to test back towards the $10,000 level and possibly the best levels of 2020.
Bitcoin heavily influences the direction of the Crypto Index, due to the size of its overall market capitalisation.
Crypto Index technical analysis over the medium term shows that a bearish head-and-shoulders pattern is close to being invalidated.
The daily time continues shows that the index could rally towards the 60,000 area if the head-and-shoulders pattern is invalidated.
Traders should note that bulls need to stage a breakout above the 48,000 level in order to invalidate the bearish price pattern.
According to technical analysis, if the 60,000 level is overcome, the 68,000 and 75,000 levels offer the strongest forms of resistance above.
What is your sentiment on MATIC/USD?
Crypto Index short-term price trend
Crypto Index analysis highlights that the index has a bullish short-term trading bias while the price trades above the 43,000 level.
The four-hour time frame shows that an inverted head-and-shoulders pattern has recently formed, following the powerful early-week rally from the 43,000 level.
According to the size of the inverted head-and-shoulders pattern, the Crypto Index could rally towards the 50,000 level over the short term.
Traders should note that if price continues to hold above the neckline of the bullish pattern, around the 45,000 level, then upside pressure will grow.
Crypto Index technical summary
Crypto Index technical analysis indicates that a directional move may finally be about to occur. A breakout rally towards the 60,000 level remains possible.