Skip to main content

BITCOIN PLUNGES $800 IN HOURS; CAN THE PRICE STAY ABOVE $10,000? BTC ANALYSIS & OVERVIEW




The short-term action continues going back and forth inside the horizontal triangle marked below on the 4-hour chart.

After two days of consolidation below the triangle’s descending trend line with zero success breaking through, Bitcoin plunged $800 to $10,082. As mentioned in our previous analysis, the $10,800 area provided tough resistance, containing the 50-day moving average line (marked in purple) and the 4-hour descending trend line (marked in yellow).

Looking at the daily chart, Bitcoin has yet to produce a higher low and has been moving in a lower-high formation, which is bearish. The question is, can Bitcoin maintain the lower boundary of the triangle, which is roughly around $9,950-$10,000? That support has held for over a month now.

Total Market Cap: $264 billion

Bitcoin Market Cap: $182 billion

BTC Dominance Index: 68.9%

Key Levels to Watch

Support/Resistance: Following the recent plunge, Bitcoin is now near the aforementioned strong support between $9,800 and $10,000, along with the ascending trend line on the 4-hour chart and the 100-day moving average line (marked in white).


In case of a break down below this area, the next support levels to be tested are $9,600 and $9,300-$9,400. The latter is a crucial area which contains the red ascending trend line on the daily chart. Below that are $8,800 and $8,500.


Current resistance levels include the $10,300 support-turned-resistance area, $10,600 (the 4-hour MA-200) and $10,800.

Daily chart’s RSI: The RSI indicator looks bearish after failing to remain above 50 and now faces the 43-44 level in a last effort to stay above its previous low. If the RSI succeeds in that regard, it might be a first bullish sign that the price could indeed remain above the $10,000 region and that the bulls are still present.

Trading Volume: We are witnessing one of the lowest volume weeks since April. It may be typical for July and August, but this amount of volume could be enough to move the whole Bitcoin market.

BTC/USD Bitstamp 4-Hour Chart



BTC/USD Bitstamp 4-Hour Chart



Comments

Post a Comment

Popular posts from this blog

Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event. In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards. Is The Bitcoin Hash Rate Correlated With The Price? In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin, and there are many factors – external and internal – affecting the price. However, there is a relation between the two. While the price goes up, it’s more profitable to mine, which likely to cause more miners to turn on their mining equ...
Post a Comment
Read more

John McAfee: Bitcoin Is Ancient Technology, As Ford Model T For Cars

American entrepreneur and controversial crypto figure John McAfee, who boldly predicted that Bitcoin would be valued at $1 million by the end of 2020, has openly lashed out on the leading cryptocurrency, referring to it as an ancient technology due to several limitations. This comes as a blow, considering that he was one of the biggest promoters of Bitcoin and crypto in general over the last few years. McAfee believes that being the first blockchain to exist does not make Bitcoin the “future.” In his opinion, there are newer blockchains with enhanced features that solve the flaws of the Bitcoin blockchain, just as the Ford Model T automobile of 1908 was replaced by more sophisticated cars. The 74 years computer programmer and billionaire has always been an advocate of decentralization and privacy. In fact, he has spent a great deal of time on the run while preaching against central authorities like government, and as such, privacy is a big concern for him, one of the features w...
Post a Comment
Read more

South Korea Won’t Tax Cryptocurrency Profits, For Now

Good news for cryptocurrency traders in South Korea as profit generated from crypto trading will not be subjected to tax, according to a recent announcement from the country’s Ministry of Finance and Strategy. The Ministry clarified that the current tax law does not consider crypto trading gains as taxable income; thus, Korean crypto traders are not required to pay taxes on the profits they earn from crypto trading for the time being.  However, crypto traders in the country may not be exempted from taxation for a long time. An official of the Ministry said that the Ministry is aware of the loophole in the current tax law, and they are currently reviewing the regulations in major foreign countries so that they can amend theirs in an effective way. “The income tax law is only taxable on income listed as taxable. We are preparing a taxation plan for virtual assets by comprehensively reviewing the taxation of major countries, consistency with accounting standards, and trend...
Post a Comment
Read more