Bitcoin Weekly Update
30-08-2019: Continued decline?
Let us look at what has happened with the Bitcoin since my last analysis.
In the end, we were given an increase in Bitcoin to the price areas we had indicated in scenario 1: $11600 and $11800. The market then turned around and dropped sharply. The $10088 support was broken due to a very large sales force. Bitcoin has fallen to our light blue rectangle zone, close to the area expected for a strong rebound ($9252) .
Thus, scenario 1 took place before continuing with scenario 2, while respecting the important areas we had indicated to you.
So what can we expect in the coming days? Again, we will look at the different possibilities:
- Scenario 1: Bitcoin regains buying power, it consolidates above our light blue rectangle before going to re-test the $10000 area. The latter was a support area both technical and psychological. Once broken, it can therefore turn into resistance.
- Scenario 2: If the $9252 support doesn't hold and we break it with a 4h candle that closes below, the next big support will be around $8500. We won't forget that this is also an area where there is an important gap for the future Bitcoin CME. Filling it would be normal and this could lead to a recovery in the rise.
It should also be noted that on a weekly timeframe the MACD crossed downwards, this is a bearish sign. That is why I will focus in particular on a continuation of the decline for Bitcoin.
To be followed, remain cautious and if you trade never forget to put on your stop-loss!
Graphic : https://www.tradingview.com/x/AvAg3OTJ/
Important News
>> Portugal crypto tax free :
Portugal’s Tax Authority has clarified that both cryptocurrency trading and payments in crypto will not be taxed in the country.
>> Amazon Cloud failure causes issues to crypto exchanges :
At 19:22 UTC, Aug 23rd, Amazon encounters some connection issues, making various exchanges such as Binance, KuCoin and Bitmax become unstable. Moreover, Binance had to disable their deposit and withdrawal due to the issue. Additionally, some exchanges even see a massive drop of Bitcoin, causing the price went down to approx. $1000. At the time of this writing, the majority of the connections have been recovered and Amazon is working to repair the rest.
>> Tether to launch Yuan-backed stablecoin :
ChainNews recently reported that Tether would soon launch a Yuan-backed stable under the ticker, CNHT. However, the date of the release wasn’t revealed.
>> Bitmain now worth $12B :
According to WeChat, Bitmain has ordered 600,000 mining chips which will boost the total computing power of the company by 50%. Moreover, the increment will boost the worth of Bitmain to $12B.
This Weekly Update is provided by 4-C Trading.
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