Following Bitcoins largest daily candle since October, it was expected that a pullback would occur to maintain a bullish structure. To those who are still new to the Crypto markets, nothing good ever goes just straight up. A healthy chart of an asset is one that experiences a consolidation phase after a move up.
A healthy chart may look like stairs or a number of flags. This chart below shows the current Bitcoin bull run, which has demonstrated many instances of these consolidation periods after a move up. Regardless of what time frame you chart with, to maintain bullishness, this structure is key.
Within the Crypto space, there are chart patterns we refer to as the ‘Burj Khalifa’. This pattern is often found with sh*tcoins and meme coins alike, to keep things simple, it's when a chart looks like the building of the Burj Khalifa. With price rocketing straight up, before coming down just as fast. Whilst the gains may supersede anything you’ve experienced before, they often disappear before you can even think to take profit, leaving investors with worthless coins that were once in great profit. The following meme coin chart is a prime example of the ‘Burj Khalifa’ pattern.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin bulls remain in control, as mentioned yesterday the key support level for BTC sits at $60,200, this was tested overnight. This is of no concern, as the bullish structure remains. Whilst we sit at this level, it provides a good opportunity to dollar cost average into your BTC allocation, as buying at support rather than into resistance often yields higher returns. Yesterday’s target of $63,800 remains and likewise $57.5k to the downside if the support fails.
BTC Total ETF Flows for 9 Aug: $ -99.3 Million
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Similarly to Bitcoin, Ethereum has experienced a retest of the key support level $2,556. We still maintain a bullish bias whilst above this and our target for ETH remains at $2,865. Meanwhile our expectation for ETH if we are to lose the current support would be a retest of the $2,171 support level.
ETH Total ETF Flows for 9 Aug: $ -35.4 Million
Written by Alexandar Artis
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