Bitcoin bounces as expected based on our 28th of July chart analysis… You can see this chart at the bottom of this trade idea…
Now, what’s on the charts today?
Let’s get back to the basics and that’s EMA10.
We rode the entire wave up by keeping it simple.
Above EMA10 = bullish .
Below EMA10 = bearish .
Bitcoin ( BTCUSD ) broke below EMA10 on the 13th of July and started to retrace. It hit a low on the 17th at $9049.54.
On the 28th of July, a higher low was hit at $9111.00 which gave us a potential “bounce signal”. This bounce is now taking form with Bitcoin challenging and moving above EMA10.
EMA10 is the green line you see on the chart (sitting at $9849.25). Now, this is the daily time frame and today’s candle is only halfway done, for this signal to confirm the daily candle needs to close.
Moving and closing above EMA10 switches Bitcoin’s potential for us from bearish to bullish and can send Bitcoin higher.
Our main target short-term is for $10,600, which you can also find on another chart below, and longer-term we are looking at $11,300.
Depending on how the charts develop, we will then adapt to the market and see what happens next.
Looking at the indicators
The RSI is now trading above resistance and can surely move higher. Here is the chart for the RSI:
As for the MACD, the histogram is moving in favor of the bulls (marked with a green arrow). And the MACD line hit a low and is starting to curve up.
These are bullish signals that are playing out.
Volume and momentum is needed, and…
A close above EMA10 on the daily to confirm this call.
Chart pattern and trendline
We also have a broken downtrend coming from the top hit on the 10th of July, this also needs a daily close above EMA10 for confirmation.
As well as an Adam & Eve bottom formation/chart pattern.
All these signals are telling us that Bitcoin can move higher as well as our longer-term and additional analyses…
Conditions for change: If BTCUSD moves down and closes below $9600 on the daily time frame, the above signals are invalidated.
Below you can find our most recent charts where we saw Bitcoin ( BTCUSD ) moving higher before it happened after it hit a higher low…
Bitcoin Stops! Time To Go Long? $11,000 or $7,200 Next?
Bitcoin ( XBTUSD ) Bullish Doji ($10,600 Next)
Bitcoin Can Easily Test $8788/$9100 + Altcoins Market Update
Bitcoin Bearish Isn’t All Bad News, Altcoins Paying More!
Warning: Bitcoin ( XBTUSD ) Bearish Engulfing, Going Lower!
Prediction: The Next Alternative Cryptocurrency Market Bull Run!
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.