Bitcoin Analysis: Week of Aug 31 (Intro to Time)
Next part of the Tony Vays' guide into Bitcoin price chart analysis.
In last week’s post, we concluded with the following statement:
"We are currently Long-Term Bullish, Intermediate-Term Bearish, and Short-Term Bullish. We will treat the US$500 as the support that is holding the price up, so assuming it does; the highest probability target is the bottom of the triangle at US$560. Once it gets there, the situation will be re-evaluated, but the most likely outcome is some more downside into early September."
The price has been very stable which is not something said often in the Bitcoin community. We are pretty much in same position as a week ago. The price dropped a bit below US$500 but rebounded fairly quickly so nothing happened for us to be concerned about. We continue to refer to this level as short term support and would consider it broken if we get a low that is lower then last weeks low of US$485, and this new low isn’t immediately reversed back over US$500. Time to take a look at the long-term chart as always and make a few comments.
Absolutely nothing has changed, we are sitting right on the rising trend line. Last week’s candle is giving us a high of US$535 and a low of US$440. Use these values as your guides of changes in trend, which at the moment is slightly Bullish from this Weekly perspective.
It is indicating that our upside hurdle is the 50% Fibonacci Line at US$630 but as you will see later in the daily charts, there is resistance in the US$560 zone that can be a struggle. The downside, if US$500 is lost, is to look for short-term double bottom at US$440 and if it can’t reverse the fall, keep an eye on the longer-term double bottom in the US$340-360.
Fundamentals (aka News)
This might have bin the slowest week of news in recent memory. They say no news is good news, which also applies to the world of bitcoin. Stability should be a positive for Bitcoin adoption. Of course we don’t expect this slow news cycle to last.
Just a few things of note for the week: the recent Bitcoin adopters like Dell and Expedia are impressed with the amount of sales volume they have received and Australia is in the headlines for their announcement over Bitc