The earlier week was incredible for Bitcoin [BTC]. Within the previous weekend, the leading cryptocurrency Bitcoin saw its price touching above $12K and dumping to $10,500 USD & then again rising to $11,750 USD. A loss of $1600 USD in just a fraction of minutes.
However, throughout the past week, the price slowly recovered towards the $12K mark once again. Earlier on 6th August, when it seemed that a new 2020 record is coming up, it was warned by several investors, following a 2nd failure to break the $12k resistance mark.
A bullish run with no corrections – which may be a parabolic run – is probably to end in a disaster. We all remember the 2017 parabolic bullish run to $20K and where the worth was a year after – let me remind you: 84% down, around $3120 USD.
What we saw yesterday might be a healthy correction to a bullish trend. The very fact that the dip was bought quickly showing the strength of the market.
On the lower timeframe, the 4-hour chart, we will see that Bitcoin is forming a symmetrical triangle (marked orange). This triangle will be likely selected a breakout of $11,800 USD [to the sake of the bulls] or $11,400 USD.
On the macro level – the following daily chart – we can see that the present price area is corresponding with the upper ascending trend-line as strong resistance, which won’t be very easy to interrupt. This line, as are often seen, was begun forming earlier in July 2019, last year.
However, an another news comes from the weekly chart, as seen above. At the longer-term time-frame (starting since 2017), we can see that as long as Bitcoin holds the $10,500 USD – $10,800 USD area – the bulls are in control. After the impressive breakout of the descending trend-line, it might be reasonable to retest the road and ensure it as support, before continuation to new sky highs.
Total Market Cap: $356.09 Bln
Bitcoin Market Cap: $216.8 Bln
BTC Dominance Index: 61.0%