In-Depth Technical Analysis on BTCUSD July '20 - By Trading-GuruIn this idea I will break-down all the price action we have seen over the last few months and explain where I believe we will be headed in July 2020. I base my decisions for this analysis mostly on big world events such as COVID-19, GF, and the recent correlation of bitcoin to the legacy markets.
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Stage 1: The Uptrending Bullmarket
Bitcoin / USD was in a bullmarket for about two full months, without nearly any big retracement we found ourselves move 40% upwards in a very steady time. Not just BTC, but the whole world was bullish. Legacy markets flourished.
Stage 2: Corona
COVID-19 came. Ouch. We went from $10,500 to $3850 in a month. The biggest drop started when Trump announced that European travel will be banned.
Stage 3: Recovery
Even though the unemployment rates skyrocketed, and COVID-19 got worse every day, the majority of the panic was gone. We've seen an incredible recover, close to our previous high!
Stage 4: Contemplation
Some more bad news came in, new daily COVID-19 cases are at a world high right now as new markets start to face issues. The world is raging over GF. Lot's of bad news is coming out about how companies struggled financially, and all it has done so far is added just enough bears to keep the price stable.
Stage 5: New Direction
After one month of non-stop bad news, it's pretty impressive that we have only seen a sideways movement. This means that the market is still inherently bullish, but that positive price action is being stopped just temporarily. It is only a matter of time before more good news will come out, some more progress about a vaccine might be made, public statements against racial discrimination or police violence might come up, etc. This will remove those bears from the markets and will make prices surge again. My advice is to go long for this reason, but try to leverage the current contemplation period to buy as low as you can. Anywhere you can buy below $9000 is a great win.
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
