Hey guys,
If you've been following my posts, you'll be aware of the recent breakdown in Bitcoin as we head towards August 1st. See the progress below!
As you can see, we experienced a $300+ USD drop in less than a day!
Since then, there has been some serious consolidation around the 2500 level at the supports. The downtrend still remaining at this point.
WHERE TOO NOW??
Well, I have been working at analysing the charts and have come up with two possible TA scenarios (A double bottom or a head and shoulders pattern).
Neither of these patterns are super strong so they may very well fail but as you can see from the image below, there is a rough head and shoulders pattern forming on the hourly charts. If this plays out, we could expect further breakdown from bitcoin and alt-coins to follow. See below.
Alternatively, the double bottom could be enough to bounce off the 2500 support level and bounce us into a bullish pattern.
Personally, I feel this will be less likely to occur due to the new in the crypto space right now. With August first approaching, Bitcoin Cash (BCC) is expected to arrive, imposing a potential threat to other cryptos. Furthermore, crypto exchanges such as Coinspot and Coinjar will be suspending bitcoin buying/selling temporarily once August 1st is almost among us. This could take days to rectify. I believe this will have a significant effect on the price of Bitcoin.
Always trade at your own risk and be sure to protect your assets as we approach August 1st!
Stay tuned!
Cheers
TCG
