Bitcoin Weekly Price Analysis: July 29 – August 6
The fork aftermath
On Aug. 1 Bitcoin was traded in the long-term $3,000 channel. Technically, the movement needed a pullback, as it had larger scale resistance. The fork resulted in the instant correction for Bitcoin price. The buyers’ prevailed, which is proved by the purchase volumes. There was also an attempt to form a reversal down at the peak of the correction. But you need to remember, that a reversal shatters the previous trend. Price movement is the result of the market demand and supply. So for a reversal, the demand volumes at the correction peak need to be at least equal to the ones, formed previously at this level.
To conclude, there were all signs for the price to go up.
Long-term growth remains
Bitcoin seems to be conquering the world step by step. It was announced that by the end of the year or in early 2018, Bitcoin will be listed on the Chicago Board Options Exchange.
And the price continues its long-term growth. Providing the trend structure keeps on, the $3,500 seems even more plausible. The current key level is placed at the largest trading volume around $2,800, the point, where the upward trend might break.
In case there are big sales and the price falls into this zone, no downward reversal will mean the upward trend is still supported. Reversal at the $2,800 channel could trigger the price collapse to the lowest resistance line, around $2,250.
Most likely scenarios
The maximum pullback level of the upward trend is at $1,830 to $2,800 range. On condition there’s no reversal down during the pullback, Bitcoin has all the chances to go higher.