Bitcoin is losing momentum

Hi folks. Bitcoin has been up 25% in one month, and right now he is losing its breath. We will see why.

He built a clear base at 30 000 $ which is both a round number and the bottom price from which we have seen buyers coming in at an impressive pace (21 july), all up to 42 000 $ after which we've seen a small correction down to 38 000 $, mostly traders taking profit and then more buyers came in.

All of this is very bulish.

However, we can easily draw an upwards curve which shows that the amount of buyers is slowing down. Also, oscillators are showing bearish divergences, showing a loss of momentum. And finally, global volume throughout exchanges is showing less interest from traders.

Not so bullish anymore ?

A key indicator to watch, is simply the 20 day EMA. We've seen price rebound on top of it several times through these past 30 days. As long and we remain on top of it, we are bullish. A break below would announce a bearish trend.


Key levels to watch:

44 000 $. This is where a buyer will start layering its orders. It has been a short term bottom twice with a lots of buyers making the price bounce.

40 000 $. A lot of volume has been traded at this level which makes it a great potential support.

46 000 $. The greed level of buyers. If I was greedy and very bullish, I'd buy here. It's also a strong base which could use as support.


Short term target: Anywhere between 52 000 - 54 000 $.

To sum up, Bitcoin remains bullish in my point of view, although a short term correction is very expected.

Let me now what you think and thanks for reading.