BITCOIN Price Analysis 02/08/2020

Hello again everyone!! I hope everyone is having an awesome weekend. 😃

For this post, I would like to discuss about the current volatility that happened in the crypto big caps especially in BITCOIN. We would be focusing on the daily chart of BTC against USD for this one.

As we can see, we had a good and successful bounce and test of the resistance now turned support in the 10,500 usd area. This is a really good indication that more and more buyers are coming in the cheaper prices. More and more of them are really having big orders in these area and that is a really good for the longs.

We can also see that the momentum indicators (RSI and MACD) are still very strong and going up. This is quite a good indication that this is just a temporary pause for the price and most probably a big shakeout. This is to separate the weak hands from the strong ones before a big price move up.

I think this pullback is a healthy one and needed for the price to continue on its upward momentum. I anticipate that this can still have more days or possibly weeks of consolidation before the next swing move upwards to the 14,000 usd are resistance. 14,000 usd will be the next strong resistance that we should keep an eye on.

I don't think BTC can break this in just one move up. I think it will get rejected in the 14k usd price area and then retest it again and finally a breakout above. But this can possibly take it few weeks or even few months to do that.

Over all, we should not panic or be impatient in this kind of moves. This is quite normal in the transition phase and it is good for us to keep an eye on the higher time frames and bigger picture to have a more good perspective on things. And always have a plan when entering the market.
A good risk management discipline can also put us on a much better place than being reckless.

If you want some chart requests or want me to analyze some crypto or asset, just comment below and I will post it next. Thanks!😃

Till next time guys and gals, Cheers!! 😃

Disclaimer: This is not a financial advice and for educational purpose only.

#investing #trading #bitcoin #btc

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