Thu, 11 Aug 2022

Important details prior to the expectations:

  • It will be tough to reverse this downward trend.
  • According to the expert's estimation, $13,000 is still a "low" number.
  • We are currently trading in a limited range ($19-20K); if BTC breaks out lower, we will be at $10k.
  • A breach above the range would not prove beyond a reasonable doubt that the bad news has ended.
  • It is advised to take a short position on BTCUSD as Bitcoin is continuing its performance from yesterday and is trading close to $ 21,300.
  • Trades with cryptocurrencies are frequently leveraged between 5:1 and 20:1, allowing the trader to profit by 20% to 80%.
  • It is crucial to show what traders would do in order to comprehend how they would respond if Bitcoin dropped any lower to the Checkpoint (PoC).

Institutional investors considered Bitcoin (BTC) to be a fascinating investment opportunity in 2021. The desire for a trustworthy, long-term store of value is alluring.

Unlike traditional money, bitcoin or BTC has a limited supply. As a peer-to-peer electronic payment mechanism, Bitcoin was created. It is distinct from any fiat currency issued by the government, such as the US dollar or the Euro. Users can send payments to one another without the use of middlemen thanks to decentralization.

BTC is currently the most valuable cryptocurrency, according to CoinMarketCap. About $678.9 billion is the market capitalization. Bitcoin gives customers control over financial stability instead of financial institutions. It is a resource that has sparked the development of hundreds of additional cryptocurrencies. Due to its superior performance versus other asset classes during the previous ten years, it has emerged as one of the most well-liked investment possibilities. What is in store for everyone in July 2022 thanks to BTC? Let's obtain more knowledge!

  • On monthly charts, bitcoin

The long-term view is more accurate when using the logarithmic chart. The trend is in favor of the bulls, as evidenced by the monthly time frame. Presently, BTC is undergoing extensive support testing. Hints are given by the structures on the left. As you can see, there is a lot of support here for BTC. The previous time, BTC remained at the level for about three months.

The price may be forced to keep hitting lower lows if it closes below $35,000, which is a crucial psychological threshold. The bulls must step it up a notch if they want to maintain the bullish channel formation. There hasn't been any sign of a direction.

When BTC created a bullish channel in 2020, a similar structure was shown. We are looking for confirmation of the support in the price action of today. On the shorter time horizons, any bullish indicators are present.

  • Bitcoin's position on a weekly chart

Following the logarithmic chart, a pattern in the weekly time frame is found. As can be observed, the price is developing near-term support.

There was a battle between the bulls and bears when the price was previously at this level. This time, anticipate a similar scenario to take place. Let's go through some more details now.

Let's examine the first black circle and contrast it with the current price activity. When the price was at this level previously, it repeatedly pierced the support zone before starting a new move. At this point, we are just over the support zone. We are already observing early signs of the bull regaining control, while there is no confirmation of the impending move.

  • Bitcoin on a daily basis

Let's use the logarithmic chart once more but on a daily basis this time. We use this time frame to decide when to pull the trigger. Here, we learn more about the respected channel. Just recently, the cost was reduced to $32,900. The bears will remain in charge until support is verified over the medium term. BTC's price is anticipated to move further toward the midline if it closes above the region of interest. However, whether or not this level is rejected, it is likely that the price will go back into resistance.

What should I do right now?

The lowest estimate, which is defined as the level that remains after the plunge has reached its absolute bottom, is still $13,000. The explanations are as follows. The important signal, however, is that if this range shown below is breached, it will go a great distance along that path:

Given that the range is small, a clean signal will always be received.

If it starts to malfunction, the cost would be $10000. As a bear, an upward breakthrough is feasible, albeit such a move would be a fair indication of a run above $30,000. I'm not sure if that would indicate a bottom has been struck or if it would be a dead cat bounce, though. I wouldn't want to start investing again as a result. A bear tearing through a region is not a guarantee that the bad thing is over because it will take a lot of money and time to reverse the current bear tendency.

The road map that follows and the preceding forecast from January indicates that this paradigm will deteriorate more quickly the longer it goes on and/or the slower the market speed.

The starting point is somewhere between $13 and $14000, but the final capitulation might be significantly lower. That's because the bottom of most collapses is untradable, and the true low-which is typically far higher-is where the majority of the market may join. One under no circumstances plans to be present when the market crashes and offers extraordinarily low prices for a little period of time. Your platform can be broken and inaccessible even though you are there. That also holds true for highs, although I'm sure many have encountered the challenge of volatile markets impairing their ability to enter or exit. With Bitcoin's bottom, that will surely be the situation.

If you support myfxbrokers.com, this is not the time to worry. In three years, bitcoin will be significantly more expensive. The solution to the question of when to buy is little and often, anytime you feel it is safe. If you decide to attempt to descend to the bottom, good luck. One will attempt to re-enter after the activity has ended if this new range is violated. A period of sideways trading should come after that final leg, breaking the bear trend and offering a chance to average in.

Throughout the year, we will reach the bottom and have numerous opportunities to slowly climb back up. Even with such a clear range to lead us, experts were intending to invest immediately. However, instead of speculating, they would wait for the market to indicate its direction.

Weekly chart dominance of bitcoin

Using the logarithmic chart to determine BTC dominance is the final step. Price has recovered from the important support. The last time the price was at this level, the Bitcoin dominance (BTCD) increased by 40%. If BTCD increases, expect investors to switch back to BTC. Investors tend to go toward things that are more stable during uncertain times. In the world of cryptocurrencies, BTC is that rock. It is believed that stability will come after it obtains exposure. Institutions will progressively accept bitcoin as a payment method.

BTC dominance is currently at an all-time high.

Final Words

The positive tendency is visible in the BTC monthly time frame. BTC doesn't confirm the upcoming direction on a weekly time scale. The bulls have found a temporary support level, according to the BTC daily time frame. The dominance of Bitcoin is expanding.

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