BTC 1D - BITCOIN COULD ENTER A PERIOD OF CONSOLIDATION
# The ascending channel we used to track price growth since 12 March 2020 (COVID-19, Global Recession) have served us well thus far. On 1st and 2nd August the price hit the middle line of the channel (12000~) and currently trading just below the lower border of the channel.
# Twice the price has deviated from the channel during that growth period, once during pre-halving period (buy the rumors, sell the news), and the other during periods of low volatility that lasted around a month (24 June 2020 - 27 July 2020).
# The expectation is for the price to deviate again and begin a brief consolidation period. This idea is supported by two long lower shadow candles (28 July 2020 and today), this consolidation could happen in a tight range of 10500-11500. On both occasions, the price hit 10500~ (awaiting buy limit orders) then quickly push back above 11000~.
# We also expect a making of higher lows en route to test 12000. Thus pushing the price out of the consolidation zone and trading back in the channel. As we mentioned on our recent weekly chart analysis (see below), bearish scenario could happen if the price manages to break below 10500 and start trading lower toward the 10000-9500 range.
# Overall sentiment still points to a bullish scenario, and our bias is for the price to trade above 12000, then getting it out of the ascending channel by breaking above the upper border. This would create a new trend above the channel and take that ascending channel out of the picture.
# On additional notes, RSI is in overbought condition on three most recent peaks; head of H&S, pre-halving peak, and August 2nd is the latest, the price then made a drop after such event.
DYOR Always
# Twice the price has deviated from the channel during that growth period, once during pre-halving period (buy the rumors, sell the news), and the other during periods of low volatility that lasted around a month (24 June 2020 - 27 July 2020).
# The expectation is for the price to deviate again and begin a brief consolidation period. This idea is supported by two long lower shadow candles (28 July 2020 and today), this consolidation could happen in a tight range of 10500-11500. On both occasions, the price hit 10500~ (awaiting buy limit orders) then quickly push back above 11000~.
# We also expect a making of higher lows en route to test 12000. Thus pushing the price out of the consolidation zone and trading back in the channel. As we mentioned on our recent weekly chart analysis (see below), bearish scenario could happen if the price manages to break below 10500 and start trading lower toward the 10000-9500 range.
# Overall sentiment still points to a bullish scenario, and our bias is for the price to trade above 12000, then getting it out of the ascending channel by breaking above the upper border. This would create a new trend above the channel and take that ascending channel out of the picture.
# On additional notes, RSI is in overbought condition on three most recent peaks; head of H&S, pre-halving peak, and August 2nd is the latest, the price then made a drop after such event.
DYOR Always
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