Bitcoin (BTC) is undergoing the long-awaited or dreaded correction – this is according to. The big daily candle of today August 2, 2020, carries lessons – not necessarily bad news, without pouring into irrational optimism either.
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The last resistances, really?
It was ultimately not the last cloud of resistance on the road to a new historic ATH for Bitcoin.
Bitcoin managed to break through the historic resistance zone of $ 11,500 – $ 11,800 and, even made a foray above $ 12,000.
However, it suffered a sharp rejection just above $ 12,000, taking a drop that took it to the $ 10,900 level in 30 minutes before climbing back up to the $ 11,080 level in a quarter of an hour.
Bitcoin dipped briefly below $ 11,000 today, before quickly recovering to $ 11,000 and above.
The bulls therefore managed to defend the 11,000 USD where apparently a support pretty solid at the moment.
In an article published on Cointelegraph, the journalist Ray Salmon Says $ 12,000 Crossing Proves Bulls Are Currently In Control Of The Markets BTC.
Today’s fall can (again) be interpreted in 2 ways:
- Is Bitcoin has reached a ceiling which will sign its fall over several days. How far ? A fall below $ 10,000 is still quite possible, even if the recent landscape of technical indicators calls for a BTC #plusjamaisendessousdes10000 USD ;
- Either this fall is positively cleaning up the markets, “getting rid” of traders and investors who weren’t psychologically ready to hold up to $ 20,000. This fall could then be interpreted as a decompression of the markets, a decline necessary for a recovery. Bitcoin will rely on its supports around $ 11,000 to start rising again, to break and consolidate solidly this time around above $ 12,000.
RSI: Reassure Investors
Bitcoin should close this day with a huge red candlestick, absorbing the gains of the 2 green candlesticks from the last 2 days.
The daily RSI (14) of BTC dropped to 67, when he was over 80; on a daily basis, Bitcoin is still in a bullish zone and technically has enough strength to retry tomorrow, August 3, 2020, an attack of $ 11,500 – $ 11,800, or even $ 12,000.
The weekly RSI (14) of Bitcoin also fell back to 63, after coming close to 70. Bitcoin also remains in the green zone over a weekly period, with a good margin of progress for the bulls.
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Bitcoin passed its test by foraying above $ 12,000; he still has to transform it if he wants to win the famous 20,000 USD. We will be fixed during this week of trading, which certainly starts off badly but, which could have a happy ending for Bitcoiners.