Daily Report – Bitcoin and Market Update (August 08 2020)
Middaily presented with a clean picture with MA50,100,200 attached on purpose. Current BTC/USD context leaves chances for MA50 retest at 10.5k that would match breakout retest on a futures CME chart that is still missing a proper retest. MA100, 200 lagging behind to create a support layer between 9600 and 9800, that also aligns perfectly well with the breakaway gap on the CME chart and gaps often tend to get filled, although the breakaway ones are pretty rare to get filled after strong thrusts. The reason I have brought this is, as mentioned many times already, for you to be ready in case unpredicted news-driven FUD occurs that could flash dump bitcoin towards these 9600-9800 levels (not to mention black swans). Overall, I don’t think its very likely we see this gap filled anytime soon as bitcoin is rather upside oriented. Middaily momentum is tilting slightly more to the neutral/bearish side although its not significant and rather proving consolidative nature of the recent movements. Account the PTSD effect that makes the market not fully “technical” yet and strongly inefficient. Let it develop a few days more, while middaily suggest throwback towards mid range level of 11300s.
Hourly sessions holding MA50 support level currently while the momentum is in overbought area after bearish crossover. Unless it breaks 11900, bitcoin still makes a lower high and technically makes it possible to see a retest of midrange level or slightly lower targets between 78.6 and 61.8% of Fibonacci retracement levels that could create a short-term demand zone. As for the range trading, whenever bitcoin stays above the mid range level, it’s slightly more bullish for the bias and bound to trade closer to range highs. In case the mid range level is broken and reclaimed as a new resistance, there would be chances we see a retest of 10500s that could generate short-term buying opportunity. As always you’ll find more details and insights in my #video-report channel and video market report that I record for you. Enjoy!
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