BTCUSD IHS and expected correction

Updated

BTC pump started on 15th of July due to good fundamental news: the first M&A deal using crypto. This significant upward movement brought the price to the major resistance level and finished IHS pattern. This is the first reason why BTC volume grows up and the price goes through resistances so easy and continues its growth.

However RSI is overbought and Technical indicators are bearish. Bull bear power is negative and it seems like BTC is going to retest $8 000 level and may consolidate even lower in the $7 600 - $7 900 zone.

Note

The support and resistance levels can be clearly seen on the 4-hour chart. The BTC price is still in follows a growth correction pattern as the price was pumped from $6 000 to $8 500. At the moment it is trying to bounce from the Fib 0.5 level, forming a local support area. In case of failure there is a chance to touch the $7 200 level. In contract sucessful consolidation and breaking through the mentioned resistance area will give an opportunity to retest $7 600 level

We hope BTC will start grow, nevertheless the best situation for Alts trade is the lateral (sideways trend) movement of the BTC price. It is more important to recover from 31th of July losses when nearly all alts went down significantly

Note

BTC perfectly followed our forecast, however at the last moment the price was dumped hard down through the support of $7 400. Immediate consolidation broke the price below a critical for this moment level of $7 000, nevertheless it managed to bounce from the lower edge of Ichimoku clouds.

It is a very dangerous moment for BTC, as there are good fundamental news: Starbucks plans to accept as a payment BTC and Chicago exchange can include cryptocurrencies to the asset list. According to TA analysis there is a larger IHS formation. So it is a very important moment for BTC it should hold current level to continue its uptrend. In case of further decrease the pattern will be broken and we can see a long sideways movement.

For the cryptowold it will be a negative situation however BTC sideways trend will open opportunities to trade Alts with a great profit with a low risk level.

Note

Update

Basic overview:

BTC is still in the sideways trend below $7 000 level. It faces with a strong resistance. Closing the daylight above the level of $7 000 will indicate a further positive scenario. But in case of a drawdown, the market can test the range of $6 800 - $6 900. Testing the specified range will indicate the further movement of the market.

Be careful with alt trades. We do not give any trading analyses or signals in the Basic channel as it is very dangerous now to trade without updates and support. However 4 our recent signals in Premium have brought 40.3% quick profit.

At the 1 day timeframe:

Price breaks the upper bound of the template and moves lower. The price is below Ichimoku clouds, support seems to be weak. The market may continue to follow a downtrend.

At the 3 day timeframe:

The market looks positive. There are good chances to move back to the range of $7 800 - $8 200 where the price will face a strong resistance.

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