BTC/USD: Bound for a Small Correction 4H (Aug.01)

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
X Force Global Analysis:

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In this analysis, we analyze Bitcoin's 4H chart, and assess its technicals to determine its bullish and bearish probabilities.

Bullish Evidence

- To begin with, Bitcoin's prices are currently trading way above significant support zones
- It has managed to test and bounce off of the 10.5k support, which confirms that the trend is indeed bullish
- Prices are trading above the Exponential Moving Average ( EMA ) Ribbon, and the Ichimoku Cloud support

Bearish Evidence

- However, there is a clear bearish divergence, with higher highs on the price and lower highs on the RSI
- While the Moving Average Convergence Divergence ( MACD ) shows potentiality for a golden cross, the trend lacks momentum for confirmation
- The Stochastic Oscillator is also showing signs of a potential corrective trend

Market Sentiment:

The long short ratio is at 71 to 29, with significantly more long positions than shorts, indicating strong signs of bullish sentiment in the market.

What We Believe

While there are signs of a potential correction, the fact that we have managed to secure the 10.5k support indicates extreme bullishness. It's also important to note that bullish divergences formed during strong uptrends have historically played out to a minimal degree, as Bitcoin continued to rally upwards after a very small correction.

Let us know what you think in the comment section below

Trade Safe.


I really like how you included bearish sentiments in your TA as well. Albeit I identify it, I seldom list it on my published posts. Simply incredibly how bullish this asset can be! I was trying to chart some scalp setups on BTC and ETH lower time frames and it was moving so fast! Thanks for sharing!

LINK/BTC just took off today, too! I charted this ascending triangle breakout earlier today and it just hit target 4 for a 49.55% gain! Good times! <3

+1 Reply
XForceGlobal CryptoGuru369
@CryptoGuru369, Thank you for the kind words, and for sharing an interesting post!
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Interesting analysis and idea! Good job! Check out my monthly schedule

+1 Reply
@Asanato, Very interesting! Thanks for sharing :)
nice analysis, thanks for sharing
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XForceGlobal PolarHusk
@PolarHusk, Thank you for the constant support!
10.5 will be struck again this month. it is the new monthly pivot. Do you know how often new untested pivots get tested? Like all the time. check them out
XForceGlobal Gunslinger2005
@Gunslinger2005, Thank you for sharing your insight.