Bottom line: Bitcoin long term structure remains bullish against 3850 lows. Over the short term though, the crypto remains vulnerable for a corrective drop towards 6300/6400 levels. We can expected the rally to resume thereafter.
Fundamental Outlook:
Dow Jones rallied more than +2.0% and managed to close at 26624 mark yesterday. Futures are trading higher today around 26880 levels as we prepare to publish. The recent optimism might be short lived as large banks including Citigroup and J P Morgan Chase hint the worst is yet to come.
COVID-19 infections continue to rise US, South Africa and India as many states rollback to lock down. Risk sentiment/Global Indices continue to rise as well with Dow Jones leading the way this week. We would again warn readers to exercise caution over the increased optimism.
AUDUSD, the risk-related currency pair, also managed to inch higher towards 0.7018 this morning. It has been easing off since then, and is expected to come under further pressure. The rising tensions between the US and China might drag the exchange rate lower. Also, if risk aversion returns, the currency might face further selling pressure.
Technical Analysis:
Bitcoin has been drifting sideways since printing 10500 levels in early June 2020. The crypto remains vulnerable for a sharp drop towards 6300/6400 levels, before the rally could continue further. Bears might be inclined to take control from here.
Bitcoin rally between 3850 and 10500 seem to be an impulse wave. Ideally, an impulse wave should be followed by a correction. It is quite normal for the corrective way to drop towards fibonacci 0.618 retracement of the previous rally.
High probability remains for Bitcoin to produce a bullish bounce if prices manage to drop towards 6300/6400 mark. The crypto could ten resume its rally towards 13800 and higher, going forward. Most traders might be willing to buy lower again.
Prepared by
Harsh Japee, Technical Analyst.
Bitcoin Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
