We published an article on 27th July regarding Bitcoin having the potential to break its daily and weekly high at 41000. The anticipated move was vivid at that point because of having a corrective structure in process at one end while on the other retail traders taking bullish positions on btc in fear of further unwelcomed rumors which might provide another hike to the crypto. On friday bitcoin finally gave breakout above its monthly resistance after 11 weeks of struggle but this wont bring peace to the big investors until we have a fractal confirmation above the 42000 benchmark. According to our previous analysis,  Bitcoin in H4 time frame had completed a 5 wave bullish structure by hitting 40,600 and then it had entered in a temporary bullish correction before falling any further. We anticipated 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. Fortunately bitcoin did retrace to 40200 and then went bearish but didnt meet our targeted destination, instead retraced back from 36467.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From current market perspective we have BTC struggling below our resistance at 40741 and didnt have the bullish momentum enough to provide a bullish closing above this zone. Relative strength index in daily is reaching overbought conditions and will most probably retrace from our weekly resistance i.e the fancy crypto will fail to break its recent high i.e 41700 and will retrace from our 38.2 fibb level. A bearish reversal is awaited and we will be observing BTC falling back to its intraday exponential moving averages expecially 50 and 100 before making any further highs. Expected next resistance would be 43300 after the completion of bearish reversal. 

BTCUSD D1

Jul 31 2021