Bitcoin – 4H.
During the last week, the most popular cryptocurrency in the world has performed three rebounds from important Fibonacci levels (38.2% and 76.4%), which restrained its further fall. However, if you pay attention to the latest highs of bitcoin value ($12,261 and$ 10,895), it becomes obvious that BTC is clamped to a narrow price range. The triangle in which the "cue ball" quotes were until recently, was supposed to predict where the cryptocurrency will move in the coming weeks. The breakthrough is carried out by its upper boundary. Accordingly, growth is expected. However, I believe that not everything is so simple, and bitcoin is now more inclined to consolidation.
The World Wide Web continues to shock and amuse traders with its predictions about how much bitcoin will cost in a week/month/year. For example, the CEO of the popular cryptocurrency exchange Binance Changpeng Zhao believes that mathematically, if a person has 1 BTC, then he is doomed to become one of the richest people on the planet. Zhao draws this conclusion based on a simple calculation, dividing 7 billion people into 21 million bitcoins. The fact that most bitcoins, like any other wealth, are concentrated in the hands of a small group of investors, does not count. The fact that about 3-4 billion people on Earth have not heard anything about bitcoin is also not taken into account. The fact that not everyone needs bitcoin is similar.
Also, the media and the Internet community are trying to popularize Bitcoin at the expense of big names of investors and financiers. For example, TV presenter Max Keiser believes that Warren Buffett can abandon his principles amid the global recession and add bitcoin to his portfolio, although he is an ardent opponent of cryptocurrencies. This is being done, as I have already said more than once, to popularize Bitcoin and its further growth by attracting as many investors as possible who want to get rich quick. A small group of people will remove the "cream" from the growth of bitcoin.
Also, the media often resort to openly fake news and lies. For example, recently it was widely believed in the media that any crisis, within an individual country or global, has a positive impact on bitcoin. An example was Venezuela, where inflation is one million percent per year. In theory, in Venezuela, residents should have long ago switched to any other currencies (especially since the US dollar is allowed) or cryptocurrencies. However, it is due to the inflation of Bolivar and the impression that the volume of purchases of bitcoin is growing. The amount of bolivars spent on buying bitcoins is growing.
The Fibo grid is based on the extremes of July 17, 2019, and August 6, 2019.
Forecast for Bitcoin and trading recommendations:
Bitcoin made a return to the Fibo level of 61.8% ($10251). So I recommend selling the cryptocurrency with the target of $9782 with a stop-loss order above the level of 61.8% if there is a closure below the level of $10251.
I recommend buying bitcoin with a target of $11021, and with a stop-loss level of $10642, if the closing is performed above the correction level of 50.0%.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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