Bitcoin (BTC) Price Prediction – August 1
The Bitcoin price is in the hands of the buyers as confidence in the bullish market mounts.
Resistance Levels: $12,700, $12,900, $13,100
Support Levels: $10,800, $10,600, $10,400
Today, BTC/USD is making a surprising move as the coin touches the daily high of $11,895; this is a monthly close higher than yesterday which happened to be the close of the month. Looking at the past daily charts, we can clearly see that the current bullish movements started upon breaking the resistance level of $9,200 on July 21, and most importantly, was breaking above the 9-day and 21-day moving averages.
However, as the technical indicator RSI (14) remains in the overbought condition, the Bitcoin price is currently surpassing a critical ascending trend-line together with the horizontal resistance at $11,837. Any further bullish movement above it may fuel the continuation towards $12,000 and the psychological level of $12,500.
Further above lies $12,700, the latter is followed by the $12,900 and $13,100 resistance levels. Meanwhile, in case of a correction, the latest resistance levels could serve as support. The first level from below is $11,500, followed by $11,000. Further below lies at $10,800, $10,600, and $10,800.
On the 4-hour chart, BTC/USD touches a high of $11,873 after the price breaks above the upper boundary of the channel. However, as the technical indicator RSI (14) moves at 77-level within the overbought, the upward move may be facing the resistance above the recent high.
Meanwhile, on the downside, if the market price retraces and breaks below the 9-day and 21-day moving averages within the ascending channel, the coin may further depreciate to the support of $11,100 and below. In other words, if the price retraces and finds another resistance above the channel, the uptrend could resume into the previous highs to hit the resistance at $12,500 and above.
According to the trading charts, the technical indicator confirms the bullish opinion of the above analysis in the very short term. However, traders should be careful of excessive bullish movements. Therefore, it is appropriate for investors to continue to watch any excessive bullish movements which might lead to a small bearish correction in the nearest term.
Author: By TeamMMG
Chainlink (LINK) Forms Macro Reversal Signal After Rally 70% in the Past Month
The ratio between Chainlink and Bitcoin (LINK/BTC) just printed a “sell 9” candle on its monthly chart, per the Tom Demark Sequential.
The Tom Demark Sequential is a time-based technical indicator that prints “9” and “13” signals when an asset has reached an inflection point in its trends. According to the indicator, LINK will likely see a reversal against Bitcoin in the coming months, after having realized strong gains against BTC in the past year.
Chart of Chainlink's macro price performance against Bitcoin by a Telegram channel that tracks Tom Demark Sequential signals. Chart from TradingView.com
The appearance of this macro sell signal comes after a cryptocurrency fund called Zeus Capital released a report claiming that the asset will retrace 99% in the long run.
An excerpt from that report reads as follows:
“Behind the shiny facade of the multibillion dollar project we have exposed signs of absolute lack of interest in building the technology, team that is incapable on delivering what is currently reflected in token’s market capitalziation and a series of market manipulations and plain lies targeting naive investors.”
This bearish sentiment about LINK comes in spite of the underlying project’s fundamental developments. China’s Blockchain Service Network (BSN) revealed in June that it will be using technologies from Chainlink:
“This integration of Chainlink provides BSN users additional security, reliability, and interconnectivity to help fuel even greater growth and adoption of blockchain applications in China and around the world.”
The project has also partnered with multiple companies within the cryptocurrency adoption to drive developments of its technology and LINK.
Analysts say that Bitcoin seeing further volatility and upward price action could suppress altcoins’ abilities to rally.
As reported by Bitcoinist previously, Nik Patel, the author of “An Altcoin Trader’s Handbook,” said that there’s a likelihood altcoins will strongly underperform Bitcoin until the asset hits a new all-time high:
“Wouldn’t surprise me to see dominance now rise until BTC all-time highs (pending a confirmed Weekly breakout above $10,600) > break $20k and alts find another bottom (like Nov/Dec 2016) > they rally concurrently like March-June 2017.”
Wouldn’t surprise me to see dominance now rise until BTC all-time highs (pending a confirmed Weekly breakout above $10,600) > break $20k and alts find another bottom (like Nov/Dec 2016) > they rally concurrently like March-June 2017.
— Nik Patel (@cointradernik) July 27, 2020
This has been echoed by other market commentators, who say that the capital and attention of cryptocurrency investors naturally gravitate towards Bitcoin if it is volatile.
Author: By TeamMMG
Why Bitcoin’s 3-Day Candle Close Could Lead to a “Parabolic Advance”
Bitcoin is currently expressing intense signs of strength as its price pushes up towards the $12,000 region.
Although it has yet to breach this key level successfully, its strong overnight upswing does seem to indicate that a move higher is imminent in the near-term.
This strength is likely rooted in the bullish monthly close that the benchmark cryptocurrency was able to post yesterday. This was the first time in three years that Bitcoin was able to close its monthly candle above $10,700.
Many analysts are now noting that this may be one of the most positive factors currently working in the cryptocurrency’s favor from a technical perspective.
It also appears that this new development is already bolstering BTC’s mid-term outlook.
One analyst noted that Bitcoin just closed its 3-day candle above the upper boundary of its Bollinger Bands. The last time this happened, its price saw a parabolic rally that sent it surging from $5,000 to highs of $14,000.
At the time of writing, Bitcoin is trading up just over 2% at its current price of $11,600.
Overnight, bulls were able to push it as high as $11,800 before it reached an insurmountable resistance region.
The selling pressure it faced here slowed its ascent and even catalyzed a slight rejection that led it down towards its current price levels.
That being said, it still remains caught within a firm mid-term uptrend, and slight pullbacks like this one are to be expected.
While zooming out and looking towards its macro price structure, it appears that the gains it has posted throughout the past couple of weeks are significantly bolstering its outlook.
One analyst explained that it is unreasonable to be bearish at the present moment after BTC posted such a strong monthly close.
“BTC HTF Update: Imagine being bearish, strongest monthly in 3 years,” he explained while pointing to the below chart.
Image Courtesy of Cactus. Chart via TradingView.
Another popular cryptocurrency analyst explained that Bitcoin’s three-day candle just closed above the upper boundary of its Bollinger Bands.
The last time it closed above this technical level, the cryptocurrency rallied from $5,000 to highs of $14,000.
“Bitcoin 3 day candle just closed, and the entire range was transacted above the upper BB – the last time that happened was April 4th 2019, right around $5000 before we made that run to $14000,” he said.
Image Courtesy of Cheds. Chart via TradingView.
The confluence of this technical development, coupled with Bitcoin’s strong monthly close, seems to suggest that BTC could be well-positioned to post notable gains during the second half of the year.