Bitcoin versus U.S dollar had a tough match of tug of war in defending the levels from breaking out any sooner than later, yet the fancy crypto managed to gain 30% from an upside move in comparison to the daily price action lows. After taking a bearish breakout from $37000 on 19th June, its been the first time btc got the momentum to have bullish breakout and target $41000 but retreated from just a bit below the belt expected. This hawkish move came after a rumor that the Amazon will be accepting payments in cryptocurrencies, which boosted etherium, bitcoin and litcoin etc but this move was limited by our 38.2% fibb level in daily and the major resistance zone. We published our analysis yestarday as well on bitcoin with the active fundamentals and levels of major supports and resistances but now we have finally got the awaited structure to provide more clear directions to our viewers.

BULLISH AND BEARISH CONDITIONS/ POSSIBILTIES :

Bitcoin in H4 time frame has completed a 5 wave bullish structure yestarday by hitting 40,600 and now it has entered in a temporary bullish correction before falling any further. We are anticipating that btc in accordance to the corrective wave formation will likely retrace back to $38,500-$39000 in order to complete its wave 'b' and from that point onwards a single reversal or a bearish fractal confirmation would activate our selling orders with our targeted destination at $33500-$34000. 

In one hour time frame bitcoin can be seen in a process of making minor degree of 5 wave bullish structure and it will most probably be completed at $38500-$39000 and currently its making 3rd wave of the 5 wave formation. We will be waiting for a reversal at the aforementioned level and execute our selling positions to the targeted destination and take an exit. Further confirmation of the direction will be awaited until the next structure forms and provides us with a more legitamate direction in terms of the higher degree of 5 wave structure. Coming days will also prove if the fundamentals in regards to the Amazon accepting cryptos were true or just a "buy the rumor sell the fact ". A fact would most probably take the hawkish sentiment from yestarday as a further bullish long time investment and a false indication would get btc stuck back inbetween the weekly lows and highs price actions in shape of a complex correction.   

BTCUSD ; A CHALLENGE TO THE HAWKS

Jul 27 2021