Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Fibonacci Retracement
One of the primary reasons I entered a long position in Bitcoin is that we are currently within the golden ratio of our Fibonacci retracement. This technical analysis tool helps identify potential reversal levels, and being in the golden ratio zone indicates a strong possibility for a price bounce shortly.
Although the price might dip to around $65,300 or $65,200, this is still within the golden ratio, suggesting that the bullish trend could resume. I have set a stop loss just below the Fibonacci retracement level to protect my capital. This strategy ensures that my losses will be limited if my trading bias is incorrect.
Imbalance Orders On The 4-Hour Timeframe
When examining the 4-hour timeframe, market orders show visible imbalances. According to market theory, prices often move to fill these imbalances before making significant moves higher. This technical setup supports the idea that Bitcoin could experience upward momentum as it seeks to balance these orders.
Strong Support At $65,000
Bitcoin is currently at a strong support level of around $65,000. Historically, support levels act as a floor where buying interest is strong enough to prevent further price declines. Being at this key level increases the likelihood of a price rebound.
Trump’s Attendance At The Bitcoin 2024 Conference In Nashville
Another significant factor is former President Donald Trump’s attendance at the Bitcoin conference in Nashville from July 25th – 27th. This event has generated considerable excitement as Trump, a potential future leader, publicly expresses his support for Bitcoin.
BlackRock CEO Larry Fink’s Endorsement
Larry Fink, the chairman and CEO of BlackRock, has recently shifted his stance on Bitcoin. After years of skepticism, Fink acknowledges Bitcoin as “digital gold.” This change in perspective from a key figure in the financial industry is another bullish indicator for Bitcoin.
Final Thoughts
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