Regardless of all these strong fundamentals ranging from CoinBase custodial services to Star Buck “acceptance of Bitcoin” via International Exchange, Bitcoin (BTC) isn’t finding any support. As a matter of fact, it looks likely that sellers might drive prices below $6,800 this week. Of course, when this happens, our long position would no longer hold.
From the News
- It’s back to Mt Gox bankruptcy proceedings and while Koyabashi, the trustee holding more than 250,000 BTCs, won’t be liquidating BTCs as before, investors won’t have a lee way to receive compensation in altcoins either. In recent details, it has been revealed that payments would be made in Bitcoin (BTC) and Bitcoin Cash (BCH) via cryptocurrency exchange accounts of the victims. On top of that, there is cash Koyabashi posses as proceeds after disposing BTC in Q1 and 2 of this year. That, August details shows might be moved to “monetary creditors”. All in all, deliberation is in progress, the final decision might lag but everything would be dusted by February 2019.
- In the mean time, following their hack, deposit and withdrawals of Bitcoin (BTC) and nine other coins has resumed at BitHumb. Bithumb is one of the leading South Korean cryptocurrency exchanges and such news is a morale boosting liquidity injection in the fledgling market.
- For mass adoption purposes, there is a new CoinBase’s Woo Commerce plugin that would give WP-built websites power to accept payment in cryptocurrencies. The Woo Commerce plugin allows users to purchase goods or services and settle in Bitcoin, BCH, Litecoin or Ethereum (ETH) depending on their preference. This Woo Commerce plugin is free and open source.
- Contrary to “trending” news, Star Bucks is yet to accept Bitcoin as payment. It’s in the public domain that they have a partnership with Microsoft and are actually looking into cryptocurrencies. Furthermore, in days to come Star Bucks shall collaborate with International Exchange (IE) for operation of Bakkt. Together, they shall work on a platform that would allow easy expenditure of Bitcoin and other digital assets in a “global network”.
Bitcoin (BTC) Technical Analysis
Overly, Bitcoin (BTC) prices didn’t build enough momentum to warrant further upsides.
From the charts, it’s clear that bulls are finding resistance at key resistance line and what we have after close of last week bearish engulfing candlestick mirrors events of those double bar bearish engulfing patterns of early May and March.
So, if past events influence future price movements, then most likely we might see further depreciation this week. After all, bears are in charge. They have been for the last 70 days or so. What we need to do is sync in with them and execute trades accordingly.
Breaking below the upper limit of our buy zone was Aug 4 bearish engulfing and high volume candlestick. Not only did we see conclusive breaks but there was a volume spike accompanying that lower low.
Now, as laid out in our last Bitcoin (BTC) analysis, we exited our longs with plans of purchasing anywhere between $6,800 and $7,200.
However, for now, my suggestion is to take a wait and see approach knowing that there is a clear double bar bear reversal pattern right at resistance in the weekly chart.
In our case, any break below $6,800 means bear trend resumption and I will recommend selling with stops at Aug 5 highs and first targets at $6,000 our main support line.
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.
Starbucks image via Shutterstock.