Bitcoin: Is The Short-Term High Now in Place?

Talking Points

Last week’s Bitcoin high nearby $4500 looks doubtful to be tested in a short-term as disastrous draft patterns appear.

Ethereum also turns neatly reduce though ‘hard fork’ might yield support.

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The latest flighty change in Bitcoin saw a digital token attack a uninformed high before slumping scarcely 20% as profit-taking took reason of a market. And a integrate of bearish indicators mount out on a daily chart, withdrawal a token exposed to serve moves lower. A demeanour during a draft shows a bearish engulfing candle arrangement on Tuesday, Aug 15th, a settlement that is routinely seen during a finish of a bullish/upward trend. The high done on that Tuesday ($4430) was only a hold reduce than Thursday’s, Aug 17th all-time high ($4480). And a spinning tip draft settlement on Thursday gives another vigilance that a marketplace is now using out of ceiling momentum. A spinning tip routinely forms during a rise of an uptrend and suggests that buyers are losing interest, withdrawal a item category exposed to a sell-off.

Chart: Bitcoin (BTC) Price: Daily Timeframe (June – Aug 22, 2017)

Bitcoin: Is The Short-Term High Now in Place?

Chart by IG

And a second largest digital banking by marketplace cap, Ether (ETH), also soared and slumped in a final few days, though is still approach next a all-time high. Monday’s burst to only $350 was fuelled by news that Ethereum will recover a new refurbish (hard fork) called Metropolis in late-September, identical to a Bitcoin tough flare during a start of a month. The Ethereum refurbish will make programming easier and ascent confidence to forestall hacking.

A demeanour during a charts sees a 50% fibonacci retracement turn around and a Aug 15 low both charity support around a $273 level, while a Aug 16 and 19 lows around $280 will also yield additional support.

Chart: Ether (ETH) Price: Daily Timeframe (May – Aug 22, 2017)

Bitcoin: Is The Short-Term High Now in Place?

Market Moves/Top 8 Capitalizations – Aug 22, 2017

Bitcoin: Is The Short-Term High Now in Place?

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— Written by Nick Cawley, Analyst.

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