Hi Guys I am writing this blog to provide you information about the Bitcoin which I have heard about as you all know about the Bitcoin as nowadays this coin was in news because of its sudden price changes but for you all who doesn’t know about Bitcoin here’s a brief information about it, Bitcoin is a type of electronic cash. It is the world’s first digital currency, it is send from user to user on the bitcoin network directly without the need of any third party intermediate and the transactions are verified by network nodes known as Blockchain, so here is some brief information about the
Bitcoin and now getting back to my topic for todays blog you also have heard about the inverse head and shoulder formation that bitcoin is forming due to upswings in its prices there is some news that bitcoin will soon reach $10,000 so talking about the rise in bitcoin prices lets start to talk about it.
Bitcoin appears to be building momentum for a price rise after defending $6,000 but there are technical hurdles still present as a formidable challenge at this time the worlds most valuable currency is changing hands at $6,689 on Bitfinex and looks to be gaining steam for another test. So while the bulls may feel a possible inverse head and shoulders breakout they are cautioned against being too ambitious. The area between the $7,000-$7,100 hosts more technical hurdles that need to be penetrated in order to prove the Bull Case.
These are some of the obstacle about which I will tell you in this article.
- 0.236 Fibonacci Retracement and Inverse Head and Shoulders Neckline.
According to the news since 11th June the Bitcoin has failed to absorb offers around $6,850 several times and establishing it as a key technical hurdle. Interestingly the 0.236 Fibonacci retracement from May high of $9,900 happens to be in the same area, according to Bitfinex exchange. A convincing break would confirm the inverse head and shoulder reversa,shifting short-term trend into bullish favour. Bitcoin can likely attack long term trendline resistance located at $7,050.
- Long term Downtrend Resistance
After reaching its all time high value of $19,891 in December 2017,a picture painted by the long term downtrend line seen in the chart below. If the inverse head and shoulder pattern takes form the trendline of resistance would likely to be tested in the following hours and days. It was said that a convincing break and close above of the downtrend would carry strong bullish implication to shift the intermediate term trend into bullish favour opening the doors for a move to $7,899.
An ETF Rejection
August will be a month for every cryptocurrency investor pays close attention to as the SEC will make a decision regarding the recent CBOE ETF proposal. However an approval will be a historic moment as it would open the doors for much awaited institutional investment a potential flow of funds which bitcoin has never seen before but with that said another ETF rejection could be just enough of a momentum killer to return bitcoin’s trend into bearish hands.
So that’s all from my side I hope you all will read this article and will like it. I have explained everything in a simple way so it will be easy for you all to understand. I am waiting for your appreciation lol but yeah do share your opinions in the comments.
THANKS Hitesh Verma