Bitcoin Trading update 16th July 2017. By Tshire Mokou

The Technical Analysis

As previously advised price action is approaching the .618 Fibonacci level at $1900 US, which offers a significant level of support and you could expect further price volatility.

The .618 Fibonacci level was resistance previous on 11th May where price went down and the subsequently recovered.

This $1900 level is also significant because at this level the price of Gold was at his highest at $1900 – $1980 at troy ounce back in 2011. So again you can expect some market reaction to this price.

However proceed with caution. The current trend is still Bearish (further downside expected) for a technical perspective it could be expected that price would bounce of this level and continue up, yet there is no fundamental reason for price to turn around at this point and be Bullish (further upside).

It is a Speculators Market

The current status of the bear market can be attributed to speculators panic selling and protecting their profits. Another perspective is that speculators do not see the future application and benefits of bitcoin. Bitcoin is still in its infancy and development stages, and currently struggles to keep up with its growing demand. This may have caused speculators to only focus on short term profits, hence the emergency sell off. Therefore speculators will react to the short term selling of Bitcoin because they are unable to see the long term application of Bitcoin and other cryptocurrencies which as a result may have attributed to the current market status.

Is this a Bubble?

Fundamentally nothing has changed and the technology is constantly improving. Bitcoin has not yet found its true price level and many experts expect further upside. The upcoming Bitcoin User Activated Soft Fork (UASF) provides a reason for speculators and traders to sit side on the sidelines before the change occurs and at that stage you would expect to see a clear direction and trajectory for the market.

The date as of writing this article is the 16th July 2017 and there is still time before the August 1st UASF to occur. Therefore from a fundamental trading and sentiment perspective – the current trend could continue through July.

Trade with caution!

The current price level does present a technical opportunity to buy more bitcoin, however from a fundamental standpoint there isn’t any real reason behind a massive rally at this stage yet it is not out of the picture. Trade with caution.

 

 

The Larger Picture

 

This current market typically summarizes what is to be expected in the cryptocurrency space, volatility, excitement, profit taking and corrections.

The cryptocurrency and digital asset economies are relatively new and the crypto market is growing exponentially. Along the way we can expect to see more bearish market runs and longer bullish stretches over the short, medium and long term wave patterns. Market caps across the board have been decimated providing some incredible token acquisition opportunities.

The vision that decentralised currency transactions offer to the world is yet to be fully measured and the freedom it offers is to be seen. Real everyday use cases are constantly being presented and evolved on a daily basis.

As adoption continues, no matter what happens August 1st, the growth of Bitcoin will also continue.

 


 

Disclaimer: This is not investment or trading advice, always do your own independent research.

Written by Tshire Mokou @ Dapp. Tech | Published: 16th July, 2017.

 

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  • Dave Murry

    Is it the bottom? Can I eek out some more gains? buy – sell Who cares?!?!?! Get in and stay in…. increase your quality of life, spend more time outside in natue, sports or with some sexy babe. Focus on improving the tech and possiblilites instead of such short term profits… IMHO of course 😉

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