Bitcoin 360 #18: 13th August 2021
Hi everyone, welcome to the latest instalment of Bitcoin 360! Our favourite currency has been on the rise for several weeks now, bringing smiles to investors’ faces. A sustainable recovery or a simple technical rebound? Let’s look into it all in today’s review.
Something quite simple but very interesting to understand in on-chain data are the different phases driving the market.
Right now, we’re in the phase of whale accumulation. The whales have used the small investors’ fears of the recent months to take their liquidity and accumulate it during the decline.
So, we’re in a phase similar to 2020 and early 2021, where the price supported by whales may start a long-term rise. Attention! I’m not saying this scenario will definitely happen again, I’m just comparing the two cases.
Either way, that may be a good thing in the long run!
A lasting uptrend
On the four-hourly chart, we can see this uptrend really well. It is characterized by an ascending support and different resistances which, once crossed, flip to act as new supports. This rise has been gaining momentum for several weeks now.
I noted two OBs (Order Blocks), the last of which supported the price in its attempt to break the $46,500 resistance currently keeping the price from running.
During an uptrend, longs are recommended. This is nothing new, but be careful with high volatility, protect your positions. Use protective stops to safeguard against a rapid trend reversal and save your money.
Now let’s take a look at the one-hourly chart.
Bitcoin is ranging between $46,000 and $43,000. This upper limit has been holding the price from reaching new highs.
Once this limit is broken, the price should pick up some bullish momentum. To explain the target from a technical perspective, all you need to do is shift the ceiling upwards. In this case, the $50,000 mark is a good psychological threshold.
This scenario remains the best one. The trend stays bullish, the price is maintained, the lows are getting higher and higher – all of this falls in line with the bullish trend.
If the price breaks the bottom of the range, it’s basically the same scenario, but reversed. We still have a solid OB on the uptrend, so that’s not something I would expect.
That’s it for today, feel free to share your thoughts with me on Twitter. Never invest more than you can afford to lose and DYOR. Happy trading and see you next Friday for a new article on CoinTribune! If you missed last week’s analysis, make sure to catch up!
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Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017. Beyond trading and investing, I try to democratise, in my own way, the ecosystem that will undoubtedly change our habits in the future!
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.