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Technical analysis of BTC/USD for Aug 28, 2019
Crypto Industry News:
Bitcoin prices may face new volatility after Craig Wright was ordered to pay 500,000 Bitcoins to brother Dave Kleiman, his deceased business partner.
A payout – worth over $ 5 billion at the time of writing – could attract a 40% tax rate that Kleiman’s assets would have to pay. There are concerns that 200,000 coins may be dropped onto the market to settle these $ 2 billion, potentially causing a collapse.
In an interview with fintech online magazine, Wright said he would comply with a court order that alleges he stole hundreds of thousands of Bitcoins by Dave Kleiman.
The ruling ends the case, which has been going on for years and has involved an increasing number of third parties far from Wright and his entourage.
Faced with numerous reports of fraud on social media, Wright even began suing those who disagreed with his alleged proof that he created Bitcoin. The trials did not lead to anything, while this week those who publicly supported Wright’s original statements withdrew their support.
Technical Market Overview:
The high of the recent BTC/USD rally was made at the level of $10,599, just above the 38% of the Fibonacci retracement, but no follow-through has occurred yet as the price got back to the channel again. The market is still hovering around the level of $10,000 which seems to be pivotal for the further price movements. The upper channel boundary has not been violated as well, so the bears are still in control of the market.
Weekly Pivot Points:
WR3 – $11,710
WR2 – $11,306
WR1 – $10,534
Weekly Pivot Pont – $10,091
WS1 – $9,320
WS2 – $8,854
WS3 – $8,140
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up of a higher degree. Any violation of the level of $9,049 invalidates the bullish impulsive scenario.
The material has been provided by InstaForex Company – www.instaforex.com
