Price flirting under 50K, time to decide!
Market analyst – IFC Markets
After touching 50K and then falling under that, Bitcoin flirting around 48,000 in the past two days. If we drew the Fibonacci from its April high to July low, 61.8% of its resistance sits at 51,000, where Bitcoin found a strong resistance, which could not pass it and started to ease step by step. However, technically and psychologically 50,000 level is the key level, and breathing above this level, can open the doors for higher levels.
Data from different exchanges, telling us that Bitcoin inflows to exchanges are increasing, crypto analysts telling us that it happens usually when the market is getting prepared for a crash. Now we can see the biggest single-day inflows since “Black Thursday,” and now it is time to ask, can we have another black Thursday with another 50% loss of value?
From the fundamental side, last week, one of the reasons that we could see the increase in the crypto market was the fast money flow from Chinese Stock markets, especially after regulatory issues. As we know, last week, we had over $560 bn wiped from China markets, and one of the biggest parts of this capital Outflow traveled to the crypto market. Since the beginning of the week, while Chinese stock markets started rebounding, Bitcoin also faced some suffering.
From the technical point of view, the overall trend is still confirmed. As long as it did not breach under the 50-MA line in the H4 chart, which is 45,000 area, we can still bet on higher levels to appear on the chart. However, from July 20, when the rally started from $30,000, RSI is always above 50-level, and now we can see that decreasing from OB area to 55, all signaling that around this level, we have to think twice before entering the market.
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