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FX.co ★ Forecast for Bitcoin and US dollar on August 27th. Bitcoin ignores the escalation of the trade war between the US and China

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Crypto Analysis:::2019-08-27T06:06:19

Forecast for Bitcoin and US dollar on August 27th. Bitcoin ignores the escalation of the trade war between the US and China

Bitcoin 4H.

Forecast for Bitcoin and US dollar on August 27th. Bitcoin ignores the escalation of the trade war between the US and China

Recent media reports suggest that there is no end to the trade conflict between Washington and Beijing. The parties gladly introduced new packages of fees, with each country stating that its measures had been taken in response to similar moves by the enemy. This means that we may see the introduction of new duties or increase the old ones already introduced soon. I have repeatedly said that the trade war has a negative impact not only on the economies of China and America but also causes the global recession. However, in this article, I am more interested in the impact of the trade war on the bitcoin exchange rate. Many experts believe that bitcoin has recently become an asset from the "safe haven", along with gold or franc. I believe that this opinion is wrong and is specifically promoted by the media, news agencies or is frankly custom-made. Bitcoin cannot be used as a protective tool, as the cryptocurrency can lose 5% - 10% of the value within a day. And this is not a hypothetical assumption. The ups and downs of the "bits" are regular. Thus, it may be that some investors have "hundreds" of thousands of Bitcoin coins "under their pillows," but they are not there to escape from the global crisis, but to make a profit when bitcoin again soars up. And for it to fly up, it is necessary to stimulate other investors, mainly one-day investors, to give them confidence that BTC will go up in any case, so that "hamsters" actively buy cryptocurrency.

Interesting calculations are provided by the startup IntoTheBlock. According to calculations, most of the "bits" currently held by users were purchased in the price range between $800 and $3900 and more than 79% at a price below $10,000. That is, 79% of BTC network members are in the investment plus. However, to stay in the black, it is necessary that Bitcoin continues to rise in price, and this can be achieved only with the arrival of new investors and the retention of old ones. However, at the levels of $ 10,000, there are already significantly fewer bulls, and now there are few fundamental reasons for new cryptocurrency purchases. Therefore, I do not expect a new growth of bitcoin soon.

The Fibo grid is based on the extremes of July 17, 2019, and August 6, 2019.

Forecast for Bitcoin and trading recommendations:

Bitcoin performed consolidation under the Fibo level of 61.8% ($10251). Thus, I recommend selling cryptocurrency with a target of $9782, with a stop-loss order above the level of 61.8%.

I recommend buying bitcoin with a target of $10,642, and with a stop-loss level of $10,251 if the closing is performed above the correction level of 61.8%.

Analyst InstaForex
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