No longer after we published our analysis on July 30th, 2018, the Bitcoin price against the USD started to slip heavily owing to overlong sideways action. In the past 24 hours. The BTC/USD pair has dropped over 5%, summing-up the overall 9% drop since the July’s high at 8512-fiat.
Nevertheless, our intrarange strategy played out well while the BTC/USD dropped. Our short on a bounce from 8324-fiat towards the interim support at 7814-fiat made a decent profit. As we slip further below the support zone, we have already deployed new strategies to make the maximum out of the current price action. But before discussing that, let’s focus on the technical indicators for today.
The BTC/USD pair is slipping below its 100-H SMA (depicted in purple); it is, however, still above the 200-H SMA (illustrated in red). The Moving Averages overall is indicating a decent selling pressure at the time of this writing. Moreover, the RSI indicator has slipped below 30 following the bullish layoff and is now inside an oversold territory. There could be some bounce back attempts, but its extension cannot be promised at this moment. The Stochastic Oscillator indicator is neutral.
Overall, our prime technical indicators point to near-term bearish sentiment.
We are using the Fibonacci Retracement graph from our yesterday’s analysis, drawn from the 5756-low to the 8512-high. Frankly, much hasn’t changed regarding our entry/exit positions. Our interim support at 7814 fiat stands broken and is now acting as a weak intermediate resistance level as we slip into the next downside range. This range is defined by 7459-fiat (coinciding with the 38.2% Fibonacci level) as the interim support and, as we mentioned, 7814-fiat as the interim resistance.
We have already entered a short position towards 7609-fiat, our downside target from the previous analysis while keeping our stops 2-pips above our entry point. A further break and we will enter a similar short position towards our next downside target near support – towards 7459-fiat.
In case we fail to break through 7609-fiat, and price bounces back above the support, then we will wait for BTC/USD to settle above the 7814-level. If smaller timeframes (15-m and 1-h) hint a buying sentiment, we will enter a long towards 8382-fiat (depicted in orange), while keeping our stop loss 2-pip below the entry position.
Featured image from Shutterstock. Charts from TradingView.