BTC Market Update 03.08.2018
We had 6 consecutive red days indicating lower prices for Bitcoin just as many thought the bottom was in place. What next for Bitcoin?
If Bitcoin holds the $7200 that would be great but we are not overly optimistic at this point. The price rejected the 200MA and since has fell sharply. We could see a test of the $6800 area where you have several levels of support inc. the rising trend-line, horizontal support which is the neck line from the head and shoulders reversal pattern and finally the 50MA which hasn't really demonstrated any real support credentials recently.
If we do break lower then we expect another test of the $6000 area, which in our opinion is not a good sign. As mentioned in previous posts, the more times a support or resistance level is tested it becomes weaker and a breakout is inevitable. If this does happen, then we would expect lower prices.
One positive sign in the past couple of weeks has been the average trading volume for Bitcoin. We have seen more volume coming in. Lets see how the next few weeks pan out.
The impending news from the SEC concerning a Bitcoin ETF could blow everything out of the water and send prices soaring just when BTC was was looking to hit yearly lows. When and if this happens remains to be seen. The CBOE ETF denouncement was due the middle of this month but may be delayed til September according to sources.
This is not financial advice and investing in cryptocurrencies carries very high risk. Be prepared to lose all of your money. Please do your own research and consult a financial advisor.