International Exchange Involvement Open Doors for SEC Bitcoin ETF Approval
Even with International Exchange involvement and prospects of buying coffee at Starbucks using Bitcoin, there is literally no support for Bitcoin (BTC) bulls. In fact week over week, Bitcoin is down 14 percent and when we consider a top-down approach, we might likely see further Bitcoin (BTC) losses this week.
- CNBC’s Fast Money is turning out to be a reliable source of bullish Bitcoin news. Well, Brian Kelly is one of the Bitcoin bulls around. In his own deductions, news of International Exchange (IE) partnering with Microsoft is perhaps the biggest news of the year and opines that this will open doors for Bitcoin ETF. Recent application by Winklevoss twins was rejected by the SEC for the second time and Bitcoin Futures is most used for hedging purposes and not open to a lot of people.
- UBS, the Swiss Financial Bank is confident Bitcoin will eventually replace fiat as the USD. However, before that happens, prices need to spike upwards of $200,000. Alternatively, the Bitcoin network should develop and implement high level solutions for scaling purposes.
- There is a new WooCommerce plugin for WordPress released by CoinBase that will allow internet users to make payments in Bitcoin and three other coins including Litecoin. This will only be possible once there is full integration by the website administrators.
Bitcoin (BTC) Technical Analysis
When we paste a simple Fibonacci retracement tool between 2017 high lows then we notice that Bitcoin (BTC) prices are down 70 percent from peaks. However, from the way candlesticks are set up, BTC might end up losing more, clear key support lines and even drop towards $5,000 assuming bears maintain the same pace.
We can make these judgments from the reaction of Bitcoin prices at our main resistance trend line in the weekly chart.
Here, not only are we seeing a double bar bear reversal pattern but there is an accompanying bearish engulfing pattern after last week’s close. This seems to be mirroring events of early March and May, and then, after printing the same patterns, BTC prices collapsed an average $4,000.
Now, going by the same assumptions, Bitcoin prices are roughly $1500 down after testing $8,500 by week ending July 29. So in any case, odds are stacked against Bitcoin (BTC) bulls and for buyers to be in charge then we need to see high volume break and close above $8,500. This looks unlikely, unless of course something extra-ordinary come to pass.
At this time frame, Aug 4 bearish engulfing candlestick is a stand out.
Not only did it break below the upper limit of our buy zone at $7,200 but its high volumes might after all set a precedence of sellers and perhaps confine Bitcoin prices in the next days.
From our last Bitcoin (BTC) trade plans, we stated that we can begin buying anywhere between $6,800 and $7,200 however, for this to hold true then we might see close above $7,200 and even Aug 4 candlestick.
If not, and for any reasons prices drop below $6,800, then we shall short with stops at $7,200 and target $6,000-our main support line as aforementioned above.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.