As of the 5th of July 2017 BTC Price Action shows that the price has reached the upper channel resistance.
Bitcoin looks to have met the upper resistance level of the descending and ascending channels and Upper level descending channel resistance has held on previous occasions and is forming a wedge pattern.
Price action has consistently bounced of the .728 Fib level in the past
Expect another touch of the .728 which would be a buying opportunity. However if the .728 Fib level breaks and a candle closes below expect further downside movement. Since breaking the .782 Fibonacci level the price action on the daily chart has closed underneath the .782 Fibonacci level which would indicate that the bear market is still intact.
One could expect to see further downside movement to the monthly .618 Fibonacci level. This would correlate to previous record highs which equaled the highs of GOLD per troy ounce ( approximately $1917.00 USD).
Fundamentally there has been no major changes to the longterm outlook of Bitcoin, and one could only assume that investors are retreating for the time being due to the unexpected outcomes from the User Activated Soft Fork Bitcoin Improvement Proposal taking place on August 1st.
This has been a factor spooking holders, sparking a sell off causing more to opt for profit protection and flee for more familiar opportunities.
Yet the fact remains that Bitcoin is still Bitcoin, most cryptocurrencies have seen a strong continued increase in adoption and the global interest and demand for Bitcoin is still at record high levels. Blockchain technology is still in its infancy and with many newcomers entering the trading markets, it would not be surprising to see more fearful sell offs in the short-term under these bearish conditions, before recovering rapidly after August 1st.
I’ll be continuing to follow the markets but this momentary BTC bear market is not expected to last very long and one would look to see where prices are moving shortly after August 1st.
A general belief is that further upsides are expected as the coin continues to be mined and traded without issue into August and beyond.
Disclaimer: This is not investment or trading advice, always do your own independent research.
Written by Tshire Mokou @ Dapp.Tech | Published: 13th July, 2017.