BTC/USD: Probable Corrective Waves 1D (Aug. 03)
X Force Global Analysis:
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In this analysis, we analyze Bitcoin's daily chart, exploring its bullish and bearish probabilities through technical analysis.
Analysis
- To begin with, Bitcoin is trading within a large ascending wedge shape pattern
- It has been rejected by the strong psychological resistance at 12k, but at the same time, has managed to secure its support at 10.5k multiple times
- While the trend overall is quite bullish, there are some technical factors to take not of:
- Counting Elliott Waves, we can see count Elliott Impulse Waves (12345) leading up from the breakout
- The Impulse waves have formed in a parabolic trend, which is unsustainable
- As a corrective wave would be in play, we could expect Bitcoin to correct further down to significant support levels, and possibly even to fill the CME gap at 9.8k
- The Relative Strength Index (RSI) is only slightly below overbought levels
- The Moving Average Convergence Divergence (MACD) looks for a potential death cross with decreasing bullish histograms
- Interestingly, however, a drop to 9.8k levels would still be technically bullish on the mid-long term
- The Simple Moving Averages (SMAs) are aligned in the following orders: 20, 500, 100, and 200 SMA
- The Ichimoku cloud support rests below the trend line support
Market Sentiment:
Long short ratios are at 69 to 31, with still more long positions than shorts, indicating a significantly dominant bullish sentiment.
What We Believe
A correction is inevitable in parabolic movements such as the one we have witnessed for the past few days. In essence, while Bitcoin is looking bullish long term, technicals suggest that a correction is overdue, and whilst a correction could take place potentially down to 9.8k levels, this would still be considered bullish on the longer term.
Let us know what you think in the comment section below
Trade Safe.
If you find our analyses to be helpful, make sure to support us by dropping a ‘like’
In this analysis, we analyze Bitcoin's daily chart, exploring its bullish and bearish probabilities through technical analysis.
Analysis
- To begin with, Bitcoin is trading within a large ascending wedge shape pattern
- It has been rejected by the strong psychological resistance at 12k, but at the same time, has managed to secure its support at 10.5k multiple times
- While the trend overall is quite bullish, there are some technical factors to take not of:
- Counting Elliott Waves, we can see count Elliott Impulse Waves (12345) leading up from the breakout
- The Impulse waves have formed in a parabolic trend, which is unsustainable
- As a corrective wave would be in play, we could expect Bitcoin to correct further down to significant support levels, and possibly even to fill the CME gap at 9.8k
- The Relative Strength Index (RSI) is only slightly below overbought levels
- The Moving Average Convergence Divergence (MACD) looks for a potential death cross with decreasing bullish histograms
- Interestingly, however, a drop to 9.8k levels would still be technically bullish on the mid-long term
- The Simple Moving Averages (SMAs) are aligned in the following orders: 20, 500, 100, and 200 SMA
- The Ichimoku cloud support rests below the trend line support
Market Sentiment:
Long short ratios are at 69 to 31, with still more long positions than shorts, indicating a significantly dominant bullish sentiment.
What We Believe
A correction is inevitable in parabolic movements such as the one we have witnessed for the past few days. In essence, while Bitcoin is looking bullish long term, technicals suggest that a correction is overdue, and whilst a correction could take place potentially down to 9.8k levels, this would still be considered bullish on the longer term.
Let us know what you think in the comment section below
Trade Safe.
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