Cryptocurrency Analysis

[IFX_Selena]

Forecast for Bitcoin and US dollar on August 15th. The collapse of bitcoin is caused by a massive outflow of one-day investors

Bitcoin – 4H.


Just yesterday, I wrote in my article about bitcoin that 80% of the price of the coin depends on the inflow or outflow of one-day investors, and not on fundamental factors, the actions of Donald Trump, the Fed, and the introduction of legislation relating to the cryptocurrency sphere. Today, we can state the fact: for about a week, bitcoin lost about $2,600 in value. This fact once again raises the question: how can bitcoin be used for the function of preserving value if it can lose about 20% of this value in a week? Therefore, I continue to hold the opinion that bitcoin is too overrated. Further, if you look at a large chart (for example, monthly), you can see that the first top of the "cue ball" was around $19500, the second – about $13500. I believe that there is a process of consolidation of the coin value of the most famous cryptocurrency. That is, there is a process of averaging the value, its reduction to market and fair. It is obvious that more or less of the average value of one coin is in the area of $7000 and $8000. However, "swings" can send BTC well below these levels. At the same time, I want to note once again that most of the "fantastic" forecasts (about the growth of bitcoin to $ 50,000 or even up to $ 250,000) have no basis, but are only the opinion of the author of the forecast, who is often a large investor and is interested in such forecasts, against which small investors want to earn, buy bitcoin and it shows growth. Thus, I believe that the current fall of the "cue ball" is not worth Trump's decision to postpone the introduction of duties on imports from China in the amount of 300 billion, there is no policy of easing the monetary policy of the Fed, the fall of the yuan and other fundamental factors. It's just that bitcoin is starting to lose popularity and fewer traders are considering it as a tool for quick and large earnings.

The Fibo grid is built on the extremes of July 17, 2019, and August 6, 2019.


Forecast for Bitcoin and trading recommendations:
Bitcoin has completed the consolidation under the level of 76.4% ($9782). Thus, I recommend selling the cryptocurrency with the target of $9022, with the stop-loss order above the level of 76.4%. I recommend buying bitcoin with a target of $9782, and with a stop-loss order at the level of $9022, if a rebound from the correction level of 100.0% is performed.



Performed by Samir Klishi
Analytical expert
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