BTCUSD continues to decline in a bearish trend that has been going on for more than a month. $9400 level acts as a powerful local support from the middle of July and does not allow sellers to lower the bitcoin price. This level is also confirmed by the psychological indicator of fear and greed (FGI) - each time the asset price approaches it, FGI goes into the oversold zone.
However, the general trend continues and the chart does not show any signs of a reversal yet. If bears manage to break through the zone of $9000-9400, then the next strong buying level will be slightly below $8000. The volume profile indicator determines it at around $7900.
This does not mean that a trend change is impossible. However, in order for this to happen, bulls need to go through the area of $10600-11500, and only after breaking through the level of $11500 a change in trend can be thought of. But last 2 weeks market is trading are in flat, and volatility is constantly decreasing. And judging by the trend on the volatility chart, the decline is likely to continue.
It is also worth paying attention to the fact that cryptomarket does not react to fundamental factors. There was no reaction to the test launch of bitcoin futures on the Bakkt platform on July 22. Although market participants were expecting this almost the same as the SEC cryptocurrency ETF decision. However, one way or another, market awaited for that - LedgerX launched the first delivery BTC futures at the end of July. But no reaction followed.
Institutional investors may have chosen a wait-and-see position due to the situation with Libra. Ambitious cryptocurrency project from Facebook has attracted too much attention from regulators all over the world, so now the company may possibly abandon it altogether. Nevertheless, Libra raised the issue of cryptocurrency regulation at the highest level. CEO Circle encouraged the US Congress to approve digital currencies as a new asset class. Ripple CEO expressed roughly the same idea in an open letter to Congress.
Thus, in the short term, it can be expected a continuation of the flat in the range of $9400-10600 with a further decrease in volatility.
However, the general trend continues and the chart does not show any signs of a reversal yet. If bears manage to break through the zone of $9000-9400, then the next strong buying level will be slightly below $8000. The volume profile indicator determines it at around $7900.
This does not mean that a trend change is impossible. However, in order for this to happen, bulls need to go through the area of $10600-11500, and only after breaking through the level of $11500 a change in trend can be thought of. But last 2 weeks market is trading are in flat, and volatility is constantly decreasing. And judging by the trend on the volatility chart, the decline is likely to continue.
It is also worth paying attention to the fact that cryptomarket does not react to fundamental factors. There was no reaction to the test launch of bitcoin futures on the Bakkt platform on July 22. Although market participants were expecting this almost the same as the SEC cryptocurrency ETF decision. However, one way or another, market awaited for that - LedgerX launched the first delivery BTC futures at the end of July. But no reaction followed.
Institutional investors may have chosen a wait-and-see position due to the situation with Libra. Ambitious cryptocurrency project from Facebook has attracted too much attention from regulators all over the world, so now the company may possibly abandon it altogether. Nevertheless, Libra raised the issue of cryptocurrency regulation at the highest level. CEO Circle encouraged the US Congress to approve digital currencies as a new asset class. Ripple CEO expressed roughly the same idea in an open letter to Congress.
Thus, in the short term, it can be expected a continuation of the flat in the range of $9400-10600 with a further decrease in volatility.