BTC/USD, BTC.D (Bitcoin Dominance), Technical Outlook, Edition #63 (26/07/21)
Bitcoin bulls take a massive hit as Amazon themselves confirm the news spreading over social media was fake. Will this effectively end the Bitcoin uptrend?
As the Qluster team predicted in Technical Outlook, Edition #62, the Amazon news was fake news.
Bitcoin breaks down after Amazon acknowledged that their marketplace would not be accepting the cryptocurrency as a form of digital payment and knocked back any comments regarding their own cryptocurrency.
It really was the perfect storm, prime the set-up on the weekend, disperse fake news that Amazon would not be able to acknowledge until the start of the business week, cause panic and FOMO, then unload on Monday when the U.S market started trading again.
Today, we break down why BTC/USD must close above USD 38K to resume a bullish uptrend. Otherwise, this was an orchestrated pump and dump, similar to the experience on October 25th, 2019.
Bitcoin, BTC/USD - 4 Hour (H4)
Mapped above is the H4 BTC/USD trading pair currently riding the H4 20 MEA (GREEN) as support while pivoting off the .382 fib retracement zone. Unless Bitcoin manages a break higher, above USD 38K, this bounce will lead to a further correction.
A cautionary “wait-and-see” approach would be the smartest play while BTC/USD consolidates. Bullish exuberance had been totally obliterated today; many have thrown in the towel after their hopium had been tainted.
That being, bears have had their way for two months now and got slack around the USD 30K order block.
Thus, bulls have to, worst-case scenario, hodl the line at USD 34K.
Bitcoin Dominance - 1 Day (D1)
Bitcoin Dominance edging ever closer to 50% of the total cryptocurrency market cap, a bullish breakout from 48% would see altcoins sell back into their BTC pairs.
The confirmation of the fake news had a large bearish impact on the markets. Bulls are still managing to hold the USD 37K levels. However, as new buyers are spooked from the market, it’s becoming increasingly likely that Bitcoin has entered into a confirmed bear market.
See you again for the next update. - q
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