Bitcoin breaks above the downward channel
Bitcoin, which is known for its wild price swings, soared to around US6,650. It breaks the downtrend line around $6315. This downtrend starts almost 2 months from now and if Bitcoin can manage to break the 23.6% fib level at $6758.7 next resistance line will be at 7368.17 which is expected to happen in the end of the week and by the next week.
Volume : Since the beginning of 2018, the market for digital currencies has been under pressure,hitting a year-low in market cap of close to US230 billion on Friday.
Reason for the Downward Market Movment : Autonomous NEXT, the financial-technology research firm, estimates recent market woes are tied to the initial-coin-offering market, the crypto-based fundraising mechanism.
Positive Notes :
1. Double bottom that can be seen as the price reached the lowest price of the year (US5,780) on two separate occasions (blue circles) but didn’t go any lower.
2. The break above the downward channel that we’ve been tracking. The price has managed to sustain above US6,250 all weekend and breaks the resistance trend line today.
Possible Outcomes : Depending on the volume spike which it also depends on news for itself the market may show a very good boost for the following portion of 2018.
Volume : Since the beginning of 2018, the market for digital currencies has been under pressure,hitting a year-low in market cap of close to US230 billion on Friday.
Reason for the Downward Market Movment : Autonomous NEXT, the financial-technology research firm, estimates recent market woes are tied to the initial-coin-offering market, the crypto-based fundraising mechanism.
Positive Notes :
1. Double bottom that can be seen as the price reached the lowest price of the year (US5,780) on two separate occasions (blue circles) but didn’t go any lower.
2. The break above the downward channel that we’ve been tracking. The price has managed to sustain above US6,250 all weekend and breaks the resistance trend line today.
Possible Outcomes : Depending on the volume spike which it also depends on news for itself the market may show a very good boost for the following portion of 2018.
Trade closed: target reached
First resistance line touched after we called it on July 2 and reached 6796.62 USD within 2 days which was above our first target. Currently Bitcoin is moving sideways waiting for an upward movement and RSI and Volume are looking good. The weekend might show us some slow market behaviour but after that it looks like we are going to see a rally of an elliotts wave. Stay tuned for a detailed update on Bitcoin's direction. With Regards. Team TWA. Trade active
Three elliot waves already successful and if the resistance line around $8367.6 at the 61.8 fib ret. level we might see
another leg up of the last elliot wave for the short term trade
opportunity. Trade is active since BTC is on consolidation for
some time and next stop will be around $9964 if bulls
continue their strength like the past 1 week. With Regards.
Team TWA.
Note
Bitcoin possible outcomes are : 1- Continue correcting to downside creating lower lows and most probably reach between the upper red horizontal line and the lower red horizontal line which is a strong support zone before bouncing back again in its up trend in a new wave.
2- Continue to correct downwards creating lower lows and after reaching the first strong support zone between 7702 - 7905 USD area extending it's down move to the side-wards support line at 7543[Blue horizontal line] before taking a new buy position.
If Scenario 1 will happen it will be a move to make sure BTC's bull run is a legit one and will start the real bull run, but if Scenario 2 is what is going to happen it will be a further correction and we might keep to wait for some time till the consolidation ends and another wave creation happen. With Regards. Team TWA.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.