As a seasoned crypto investor with over a decade of market experience under my belt, I’ve seen my fair share of ups and downs in the digital currency space. The recent dip in Bitcoin’s price following the US government’s $2 billion move is just another rollercoaster ride that we all signed up for when we jumped into this wild West of investing.
After a 6.6% drop following the U.S. government’s transfer of $2 billion worth of Bitcoin, the price has since been holding steady near the $66,000 mark. Indicators suggesting momentum are starting to reset, hinting that another upward price surge might be imminent.
In simpler terms, despite a minor outflow of Bitcoin from U.S. Spot ETFs recently, there’s still a strong bullish outlook for Bitcoin reaching and surpassing $100,000. This small outflow is insignificant compared to the large inflows that have been happening in these ETFs over the past few weeks.
Nasdaq in channel correction
Apart from the significant move of the U.S. government involving $2 billion in Bitcoin, another major factor contributing to its recent drop is the persistent adjustment happening in the conventional stock market.
The QQQ represents an Exchange Traded Fund (ETF) for the technology stock market on Nasdaq. As you can observe in the graph, the QQQ has been moving along an upward trend since the beginning of this year. So far, there have been three notable declines, with the largest reaching approximately 11%. The current decline (at about 9%) appears to be approaching the bottom of this channel, which could potentially provide support at $448. If a rebound occurs from that point, it’s likely. However, if no rebound is seen, a drop down to $408 might occur instead.
S&P 500 already at the bottom?
In simpler terms, the S&P 500 might have already hit its lowest point (bottomed) within a specific range (channel). The current price has touched the level suggested by the Fibonacci ratio of 0.382. If it drops further, there’s potential support at the 0.618 Fibonacci level, but this could be difficult because the price would have moved out of the bottom of the channel. This might cause a more significant correction, potentially taking the index to the 0.786 Fibonacci level.
$BTC short term time frame bounce expected
Regarding Bitcoin: Over the next 4 hours, it’s worth mentioning that the price has stabilized slightly above the 0.618 Fibonacci level for this particular movement. Given that the short-term Stochastic RSI indicators have mostly reset, there’s a possibility that a rebound could occur from here.
As the peak of the bull flag is almost reached, aligning with the earlier 0.382 Fibonacci level, it’s vital for Bitcoin ($BTC) to surpass this point and sustain its progress. Additionally, the pivot-low at $63,430 serves as another significant barrier that must be maintained above.
Read More
Sorry. No data so far.
2024-07-31 14:13