Ahoy traders and mateys!
In the two past weeks, the Bitcoin has performanced really well and is showing increased volume on the weekly chart once again!
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Increased dominance of Bitcoin has caused the altcoins to collapse and most of the altcoins are getting to the point where it’s lucrative to in to them. Increased dominance can be explained in several ways. One of the reason could be that the institutions are attracted to invest in to Bitcoin because of the news surrounded around Bitcoin ETF. This is already having a effect on the market price and should have bigger impact once it gets approved.
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On July 23, the total market capitalization reached $279 billion which was the lowest point and the highest point was reached on July 25 which was $304 billion. The total market capitalization is now hovering around $289 billion.
The total market capitalization is roughly by $50 billion when compared to the previous week.
This week Bitcoin dominance has seen increase from it’s low of 45.26% to it’s high 47.53%.
While the altcoins has been suffering from decline.
Since the cryptocurrency market is dominated by the Bitcoin it has caused the altcoins to collapse.
The market is reaching to the point where altcoins are getting more lucrative to enter and this requires patience. (Try hang in there pal!)
Since my last report the price of Bitcoin has improved and it managed to reach resistance area formed by 0.618 fibonacci level ($8.384) and MA200. The price got rejected from this area and moved to lower level of $7.882 and bounced. The price is ranging in between of two fibonacci levels ($8.384 – $7.882) and the longer it stays inside of them the higher is the chance it to move further upwards. Consolidation at these levels is actually letting oscillators to cool down and is giving fuel for another move upwards.
The next resistance levels are $8.384 and $8.919. When it’s able to break through of the first resistance zone, then the Bitcoin could reach $8.919 level rather easily.
It is required that the daily candlestick closes above of MA200 and 0.618 fibonacci level to maintain bullishness.
The next support levels are $7.882 and $7.750 levels (formed near to MA100 level.
MA100 has acted as support in the past and that’s why it’s important to consider it as the potential support.
The pitchfork is giving a good hint about the price range and where it is meeting potential supports / resistances.
We already had rejection from this level but it bounced rather strongly after reaching the support zone. What I’m potentially looking from here is a breakout.
If it breaks the resistance it will more likely to reach the top of channel where is the next resistance zone located + top of the pitchfork. In the longer term perspective this channel gets invalidated after it manages to break through of the blue resistance line.
The weekly chart
The MACD has improved from last week and crossover is getting closer. Volume has continue growing in this week and seeing steady increase.
The bullish divergence is supported by Histogram and last time Bitcoin had similar divergence on the weekly it lead to a huge bullish run.
MA50 is acting as resistance and getting above of it, is a really good signal for continuation.
When the price is ranging on the daily, it’s often time to wait and be patience.
This is the first time since December when the weekly buying volume is able to get above of selling volume. This is very strong signal that the market is trying to recover in the longer perspective and it should be also expected to see pull backs on the smaller timeframes. As long as bulls keep buying these the more upward strength it shows.
The market sentiment is currently very positive and majority of the people are looking for positive results in the cryptocurrency. There are no doubt that the market is growing it’s potential.
On the daily chart the price needs to break through of MA200 which has acted as resistance and breakout is going to bring confidence back in the market again.
Different strategies can be utilized at these levels.
-> You can buy the breakout or retest of the breakout (with confirmed signals)
-> Find optimal reversal areas to enter (with confirmed rejection signals)
Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information, or courses let me know and I’d be more than happy to help you!
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
My list of trading tutorials:
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Telegram – http://t.me/YarrChat Captain’s Crypto Cabin
Trade altcoins – https://www.binance.com/?ref=10803871
Tradingview – https://www.tradingview.com/u/yarr/
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