Home / Crypto Currency / Bitcoin Price Intraday Analysis 7/8/2018: BTCUSD Awaiting Breakout

Bitcoin Price Intraday Analysis 7/8/2018: BTCUSD Awaiting Breakout

BTCUSD Bitcoin price


Opposite to what we expected in our previous analysis, Bitcoin has not attempted to extend its bearish momentum, at least in the last 24 hours. The BTC/USD yesterday established an intraday low at 6856-fiat, which also acted as a support to a bullish correction phase. As a result, the pair has recorded around 2% gains at the time of this writing.

After the BTC/USD slumped below 7000-fiat, we were waiting for the pair to attempt a breakout above the said psychological resistance, before we put a long position towards the interim resistance at 7147-fiat. And thanks to the minor upside, we were able to achieve the targets today.

BTCUSD Technical Analysis

In medium-term, the BTC/USD is still locked inside a descending channel. The pair is now near its potential deflection point, while a break above it will confirm an extending bearish correction. The fact that the 100H MA is also above 200H MA is also enough to assume a potential upside breakout. However, a narrow gap between the two moving indicators points to a sluggish bullish momentum.

The BTC/USD, in the meantime, is trending below its 100H and 200H MA, with the pair close to jumping above the 200H MA in event of an extended upside move. Both the RSI and Stochastic indicators have moved north after spending time in their oversold areas, signaling the absence of selling positions.

Overall, the Bitcoin market conditions have improved. But the medium-term bias continues to be bearish.

BTCUSD Intraday Analysis

We have just closed our long position towards 7147-fiat on a decent profit. As of now, we are waiting for the price to attempt a breakout, which automatically influences us to put our breakout strategy in place before anything else. That said, if the price manages to cross above 7147-fiat, our interim resistance for a very long time, then it would have us put a long position towards 7275-fiat, our primary upside target. A further break above the upside target would clear our position towards the 38.2 Fibonacci retracement level at 7469-fiat.

Not to forget, that our stop loss during the long positions will always be 2-pips below the entry point.

Looking the other way around – we also expect a pullback from the resistance of the prevailing descending channel. Should it happen, it naturally influences to switch to intrarange strategy. That being said, a pullback from 7147-fiat would have us put a short position towards 7000-fiat, our psychological support at this moment. A further break, and we’ll look to retest 6856-fiat as the new interim support. A stop loss a two-pips above the entry point will protect us from potential bias boomerangs.

Trade safely!

Featured image from Shutterstock. Charts from TradingView.

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Is Demand For Bitcoin Mining in Decline? Chip Maker Slashes Target

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest dedicated independent chipmaker, has predicted a drop in demand from the cryptocurrency mining community in the fourth quarter this year. The growth target of 7 to 9 percent was slashed to 6.5 percent partly due to the demand dynamics of bitcoin miners. Crypto Mining Demand For TSMC Chips to Weaken Further In Q4 2018, Says CEO C. C. Wei, Chief Executive Officer and Vice Chairman of TSMC told investors at the company’s third quarter 2018 earnings conference that business growth would be offset by “continued weakness in cryptocurrency mining demand”. “Moving into fourth quarter, despite the current market uncertainties, our business will benefit from the continuous steep ramp of7-nanometer for several high-end smartphones as well as the demand for 16/12-nanometer for the launches of new-generation GPU andAI. However, this growth will be partially offset by continued weakness in cryptocurrency mining demand and inventory management byour customers.” The company forecasts growth between 5 and 7 percent for the overall semiconductor market excluding memory, while foundry is expected to grow between 6% and 7%. Weakening demand from cryptocurrency miners has forced the firm to adjust the growth estimate to 6.5 percent in U.S. dollar terms, according to the chief executive. “However, our business is also negatively impacted by further weakening of cryptocurrency mining demand. As a result, we estimate our 2018 growth rate will be about 6.5% in U.S. dollar term, which is close to the foundry industry’s growth but slightly below our 7% to 9% guidance given in the last conference.” The downshift in mining profits is the main responsible for the company’s revision of its full-year sales target, citing uncertainty in the cryptocurrency market as its reason. In April, the Taiwan Semiconductor Manufacturing Company lowered its 2018 revenue guidance to 10% growth from 10-15%, estimating that about 10% of the Asian chipmaker’s revenue depends on cryptocurrency mining demand. Moreover, the entrance of Samsung in the global cryptocurrency mining sector could be providing TSMC their first real competitor in the sector, which in turn, may eventually push the company to lower its sales targets in years to come. Samsung has started the production phase of bitcoin and cryptocurrency mining equipment and ASIC mining chips earlier this year. The company intended to manufacture GPU miners for miners targeting small cryptocurrencies in the upcoming months. President Trump’s trade tariffs, on the other hand, may hurt future trade volumes of Chinese companies producing cryptocurrency mining hardware. This may eventually benefit TSMC as competitors from the People’s Republic of China will have a hard time in the race for the U.S. market. The post Is Demand For Bitcoin Mining in Decline? Chip Maker Slashes Target appeared first on NewsBTC.

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