Cryptocurrency Analysis

[IFX_Selena]

Forecast for Bitcoin and US dollar on August 5. Donald Trump contributed to the growth of Bitcoin and other cryptocurrencies

Bitcoin – 4H.

As seen on the 4-hour chart, Bitcoin performed an increase to the corrective level of 61.8% ($11544), rising by almost $1000 since the last review of this cryptocurrency. New purchases of "cue ball" were caused by statements of the President of the USA Donald Trump concerning the introduction of trade duties on the Chinese import from September 1, as described in detail in the article on EUR/USD and GBP/USD. However, not only the most famous cryptocurrency, but also gold, Japanese yen, and Swiss franc added in price. In general, the so-called safe-haven assets, low-risk currencies. Because, based on the articles about the euro and the pound, it seems that the US dollar has little reaction to the news about the escalation of the trade war with China. However, it would be more correct to say that the forex market reacts poorly to this news, but only in pairs with the euro and the pound, as these currencies are now weak in themselves due to the weakness of the UK and EU economies and too many risks for them. Bitcoin took advantage of the next chance given to it for growth.

At the same time, the analytical firm Elliptic paired with the Massachusetts Institute of Technology, conducted a study in which 203,769 transactions worth more than $6 billion were studied and the results were obtained that only 2% of the total number of transactions are illegal. At the same time, 77% are marked as unknown, which immediately allows us to ask the question: what was the meaning of this study and the conclusion about 2%? Most likely, this is a reaction to the insinuation of Steven Mnuchin, who previously claimed a high percentage of illegal transactions involving BTC. The report is very weak because, given the anonymity of cryptocurrencies, it is impossible to determine which transaction is legal and which is not.

The Fibo grid is based on the extremes of July 10, 2019, and July 17, 2019.


Forecast for Bitcoin and trading recommendations:
Bitcoin has fulfilled the growth to the correction level of 61.8%. So I recommend selling the cryptocurrency with a target of $11057, with a stop-loss order above the level of 61.8%, if it will be rebounded from $11544. I recommend buying Bitcoin with a target of $12137, and with a stop-loss order below the level of $11544, if you close above the correction level of 61.8%.



Performed by Samir Klishi
Analytical expert
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