Published: July 27th, 2020
During the past trading week, the Bitcoin price has been on a steady rise. On July 16 BTC/USDT has reached and rejected 78.6% Fibonacci retracement level applied to the last strong correction down. At the same time price has rejected the uptrend trendline and Bitcoin remains above the 200 Exponential Moving Average. Today Bitcoin is attempting to break above the key psychological resistance at $10,000. If the daily close will be above, the price might start to rise exponentially in the coming weeks. This should trigger similar price action on multiple altcoins, and today we will observe the price potential of the Ontology vs Bitcoin (ONT/BTC).
On the Weekly chart, ONT/BTC has reached and rejected the simple downtrend trendline after hitting 0.0000876 high. While the price was moving up, it broke above the 50 Simple Moving Average although failed to test the 50 Exponential Moving Average. After the trendline bounce, the price went down and has reached the previously established area of support near 0.000656, which could be the price of interest for buyers once again.
As long as Weekly close remains above the support, ONT/BTC should produce another wave to the upside. The first and key resistance is seen at 0.0000930 area, which is confirmed by 50% Fibonacci and 127.2% Fibonacci retracement level applied to the currency corrective wave down. This target also corresponds to the 50 EMA and it will be important to watch the price action at this level when/if reached.
If the first resistance will get broken, Ontology might be aiming for the next Fibonacci level. This could be either 38.2% Fibs at 0.0000992 or 23.6% Fibs at 0.0001070. Overall, the 0.0001 psychological level is likely to provide a strong selling pressure because of massive profit-taking from buyers at that price.
The 16-hour chart clearly shows that 61.8% Fibonacci resistance at 0.0000864 has been rejected, after which sharp correction down followed. But right now ONT/BTC almost reached the uptrend trendline and already rejected cleanly 200 Exponential Moving Average. While price remains above the 0.0000656 support area, it’s highly likely that bulls will take over once again and the price will attempt to produce a new higher high. On the other hand, Daily break and close below the support could extend the correction down further, towards one of the previously formed support levels.
On the 4-hour chart, we have applied a simple uptrend trendline and Fibonacci retracement indicator to the trendline breakout point. We can see that price has traveled the same distance after the breakout as it did before the breakout. This means that the downside target for the sellers must have been reached when ONT/BTC tested 0.0000664, which is today’s’ low. Therefore, Ontology is trading in the demand zone and the price might reverse to the upside at any time.
The bottom of the descending channel has been tested, yet again suggesting a potential demand area for the ONT/BTC. Fibonacci applied to the last bounce off the channel shows that price has reached and rejected 261.8% Fibonacci support at 0.0000669, where buying orders could be starting to trigger. At the same time, there could be a stop-loss hunting initiated by whales. In this case, Ontology might move lower, to test the next Fibonacci support at 0.0000637, which could be a very important level for the long term buyers.
The mighty Bitcoin is trading above the key psychological resistance at $10k. This could be proof of the overall strength of the cryptocurrency market, resulting in the rally across multiple altcoins. Ontology is currently trading in the strong demand zone, which might provide a very good risk/reward buying opportunity for the medium to long term traders and investors.
The key psychological resistance is at the 0.0001 level. However, there are multiple Fibonacci retracement levels near that price, all of which must be monitored for either a breakout of a rejection. The nearest and key resistance is at 0.0000864, then comes 0.0000928 and 0.0000992, with the final upside target being at 0.0001072.
As per the hourly chart, the key long-term support is seen at 0.0000637. Only daily break and close below this level will invalidate bullish outlook and Ontology will either initiated a consolidation phase or continue the medium-term downtrend. This should bring the price down to 0.0000596, 0.0000561, or even 0.0000473 support as per the 16-hour chart.
Support: 0.000656, 0.0000596, 0.0000561, 0.0000473
Resistance: 0.0000864, 0.0000928, 0.0000992, 0.0001072