Bitcoin – 4H.
The last days turned out to be "black" for the most famous cryptocurrency. Quotes of the "cue ball" decreased over the last 4 days by $1,000, and the talk of using BTC as a protective asset immediately subsided. Some experts with a worldwide reputation even said that bitcoin cannot be used as a custodian of value. For example, Peter Schiff, a financial expert and analyst, believes that bitcoin failed the test for "the ability to be a protective asset" last Friday. As an argument, Schiff cites data that against the background of a new escalation of the trade conflict between the US and China, the yen, franc, gold, and silver rose in price, and bitcoin collapsed. It is also noted that the opinion that many large investors use bitcoin during hedging risks also remains only an opinion and theory, which is not confirmed by anything. Experts and analysts can only judge by supply and demand in the crypto market. However, the growth of demand for bitcoin at a time of growing geopolitical tensions is not mandatory. And to find out who, how much and why bought Bitcoins, is impossible. Accordingly, it is absolutely impossible to say that bitcoin is used as a protective asset. I believe it is not used as such by definition. Cryptocurrency is too volatile and unstable.
Based on all of the above, I believe the current information background is negative for bitcoin. Accordingly, traders may well count on the fall of the number 1 cryptocurrency to the next correctional level of $9,022 per coin. The fate of the "cue ball" will depend on the ability of bears to continue to put pressure on the cryptocurrency. Bulls will be able to count on something only after returning above the correction level of 76.4% ($9,782) on the "turquoise" Fibonacci grid.
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 38.2% ($9,558). Thus, I recommend selling cryptocurrency with a target of $9022, with a stop-loss order above the level of 38.2%.
I recommend buying bitcoin with a target of $10,251, and with a stop-loss level of $ 9,782 if the closing is performed above the correction level of 76.4%.
