Crypto Analysis Report 7-27-18 BITCOIN...I Was Praying For A Pull Back
A week ago, I talked about Bitcoin bottoming,
While breaching the $6800, price formed a new uptrend. Price is stalling near the $7600 level currently. I don' think the level at $7600 is considered resistance or a supply zone because there was too much training at that level as indicated by the yellow rectangle.
The chart is suggesting price will continue to move higher and battle the sellers at the daily supply zone at $8460.
Price hit the daily supply at $8460 and pulled back yesterday. Would you believe I was praying for a pull back to happen? Trending markets ebb and flow in harmony through impulse and corrective moves. Quite simply, pull backs are very healthy and normal when markets are trending. Pull backs are usually profit-taking opportunities following a strong run-up. Pull backs are defined as the corrective move.
Pull backs don’t have to be literal. They can be levels of consolidation / sideways action. Again pull backs are healthy because in up trends they act as levels of support and in downtrends, they act as levels of resistance. Levels of support / resistance are where buyer and sellers are battling for position until eventually only one team remains standing.
Again pull backs are healthy and here’s the real reason why. Pull backs allow new buyers (in an uptrend) and new sellers (in a downtrend) to get on board the train. If bitcoin was to go straight up, it would exhaust the buyers in the process. Once buyers start taking profits..meaning they sell and as price starts to move down, because there aren't any buyers, prices tends to return to the origin of the move up.
In conclusion, because the price on Bitcoin didn't go straight up, look for price to pull back to $7300. The chart suggest that level is a great level to get on train.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Published on
by rollandthomas
I’m praying for another bull run! We are overdue one now by crypto standards 😄
I think this is just the beginning.
Hi,
Perhaps by next Friday, BTC will retrace down to $7.3k as you mentioned.
I think for now $7300 and $8500 becomes the range for now.
Hopefully, the market moves higher together next time as well.
Positive events, followed by volume (as you pointed out) should take the Markets higher.
@rollandthomas