Bitcoin Likely to Crash to $5000 before ETF Decision in September.
Hi traders, it's not looking good for Bitcoin.
Technicals.
- On the larger time frame we're still moving into this gigantic descending triangle:
- According to Bulkowski, descending triangles have a 64% chance of breakout to the downside:
... and in our case this bearish pattern conflates with a hidden bearish divergence which is starting to play out on the weekly (notice the Stoch RSI has started to cross under):
- From the current price $6300 I believe Bitcoin's could still rally to $6500-$6600 (which would completely overbuy the Stoch RSI in the process) before dropping down to $5000 USD in late August-early September, right at the bottom of this volume well where it will probably have a bounce and maybe find a floor.
Despite Bitcoin's technological fundamentals being better than ever, the market is smelling blood and the momentum is coiling for some bigger, high volume move to the downside sometime later this month or early September which could be coincide with some news event (rejection of the CBOE ETF in September, FATF recommending the G20 to ban cryptocurrencies);
At this point it's unclear how the market would react to an approval of the ETF by the SEC so I am not completely writing off the possibility of Bitcoin finding a higher floor if this were to happen. But since hope is not a strategy I am staying in cash barring a few long term investment coins. I would suggest you do too, accumulate cash in your day job (you've still got a day job haven't you?) in prevision for the next market cycle.
Patience is the name of the game now.
How low do you think Bitcoin will go, traders?
Until next time,
FØx.
If you liked this article, make sure to show some love by up-voting or following yours truly. You can also check our fabulous featured reviews with @deanliu about the Aragon project, a neat DAO project on Ethereum and the Kyber Network, a great and user-friendly decentralized crypto exchange which allows you to trade directly from your hardware wallet.
Recommended Exchange:
Coinbase
Decentralized Exchange:
Radar Relay
Kyber Network
Hardware Wallet:
LEDGER NANO S
May the FØx be with you.
Congratulations @tradealert! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOP
To support your work, I also upvoted your post!
Yay!
We don't need an ETF and is only speculators that play with this news to make a quick buck shorting Bitcoin again!
Hum, not so sure about that, what's your reasoning? I think an ETF would be great to increase awareness of the brand.
It is not the ultimate goal to have an ETF for Bitcoin to succeed, speculators and gamblers are playing with it to drive the price and make a profit.
What we need is to maintain the volatility and make Bitcoin useful, be able to spend it everywhere, and merchants to accept it.
An ETF is simply a basket of crypto that you buy with fiat money, nothing else!
Yeah I agree, we need some top notch Lightning Network UX to capture mainstream, however getting an ETF will help the brand, so many people still think BTC is drug dealer money so a ETF could definitely work to correct this bias.
I agree 100%. The awareness will come for certain. Sure - centralised money can rush that process a bit with it's quirky little financial instruments, but in the long-run ETF or no ETF does not matter a damn!
Agree with you for the long term picture.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by tradealert from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.
I'll put the bottom at $5750.
Time will tell I guess :)