Just a quick update on the Bitcoin market versus the US Dollar as we get ready to go into the weekend. Many traders that were short on the market got pretty rekt as BTC gained about $2k at the time of writing this. The market is very bullish, however be prepared for a correction before the price action goes higher.
When we take a look at the Bitcoin to USD 1 Day candle chart we can clearly see the strong bullish trend that developed during July. It is normal for the market to correct as the buyers and sellers battle it out on the order books.
This strong bullish move is not really surprising, as 2018 has been filled with thousands of potentially bullish fundamental developments in the Crypto space. We can see the regulators in various countries wrapping their heads around Crypto. Even though this news gets skewed, it is important to realise that regulation will pave the way for the big money to enter the market.
Back to the charts, should we get a pullback here I would put support anywhere between, $7600 – $8000, as we can see volatility is nice and high, which means big swings (up or down) can be expected. Resistance is steadfast around $8300 – $8600.
Elliot Wave theory suggests that this little rally still has one leg up to go, could be this weekend or after a correction. Safe trades.
Lets be patient and wait for the market to show us the next move.