Weekly outlook of BTCUSD for Bitcoin Brokers – 7th August 2018

Bitcoin to USD weekly outlook for Bitcoin Brokers


Coming to the end of last week on major bitcoin brokers, the Bitcoin price plummets into a series of consecutive bearish bars from a daily chart horizon, amid Futures volatility. Price currently hovers above the $7000.00 support, which also happens to correspond with a 65-period moving average of the same daily chart.

Speculative Demand

An operator of the NYSE and twenty-three (23) other global exchanges, recently made an announcement to launch a cloud-based Microsoft ecosystem for digital assets. Intercontinental Exchange, is forming a  company called Bakkt, offering merchant and consumer and institutional clients a level ground to buy, sell, store and spend crypto/digital assets.

Blockchain Adoption

Also in the news is Jamie Dimon, saying that JP Morgan will use blockchain for a whole lot of things in an interview. Though he refused to make comments on cryptocurrencies, he affirms that blockchain technology is real and his company is experimenting with it. He later went on to say that cryptocurrencies are not the same as Fiat currencies or gold

Technical Analysis

Being able to synergize different technical trading concepts into one can truly guarantee a successful trading experience. Here we will be using candlestick price action patterns and the MACD oscillator all on a multiple timeframes. Also, not forgetting chart patterns such as the Chuvashov’s fork.

BTCUSD: Monthly Chart

BTCUSD Analysis for Bitcoin brokers - August 5

For a couple of months now, we’ve been viewing the above chart, and being the highest timeframe, nothing much has changed about it. The MACD oscillator is still in a dead cross formation, which is quite significant to our general, decision-making process. Although the piercing candlestick formation shows a hope of recovery for the pair into a bullish rise, this pattern alone may not be sufficient for this move.

BTCUSD: Weekly Chart

From a previous post, we mentioned that a price close outside of the Chuvashov’s fork could imply a change in trend direction towards the upside. On the other hand, if price closes below this last trend line again, we could see a further price plummet to the downside. As the previous week closed in a bearish bar, we could expect the pair to make a further dip moving into this week despite the MACD golden cross of the weekly chart.

BTCUSD: Daily Chart

The above daily chart illustrates how the previous week closed bearish. This was made possible, thanks to a failure of the bullish accumulation pattern formed at the top of the daily bullish trend. The failure was later followed by another bearish accumulation pattern which further sent the price tumbling down.

At the close of the previous week, price sits on the 65-period moving average, using it as a support. Buying into this downward trend will be likened to catching a falling knife. For a reversal pattern back to the upside, I’ll be looking out for a bullish hidden divergence setup from the daily perspective. 

BTCUSD: 4-hour Chart

This is where the meat and potatoes of the week are well visualized. As the price close above the 65-period moving average on the weekly chart, it forms a double bullish accumulation price pattern on the 4-hour chart. Even as this looks like an opportunity to pile up buy, orders, referencing the higher timeframes point us to possibilities of a bullish accumulation failure.

BTCUSD: 2-hour Chart

A bearish hidden divergence pattern is triggered on the 2-hour chart sending the exchange rate of the BTC to USD pair south. At the moment, the pair trades within a range setting itself up for a breakout in either direction.

Conclusion and Projection

Well, it’s obvious this week is on a verge of continuing in the same direction as last week. Price may likely correct upward a bit before finally nose diving. There is a high probability that price will enter the 6k region this week.

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I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
James Martin

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