As predicted last week….
The overbought nature of the equity market confirmed by our indicators represented a strong crypto signal for a fall if the stock market starts to tumble.
In the past week, Bitcoin hit $20,760s from $25,200 and is now back up to $21,345, confirming the bearish anticipation we discussed.
Client Profits:
We chose to remain conservative and booked profit at +/- 25,000 levels as the probability to hit 28,000 levels was just below 50% odds and our proprietary indicators were close to overbought levels.
Our portfolio position breakdown is composed on average of 70% in $ cash and we still hold little risk exposure to BTC and a few large-cap coins
We have reopened SOL, AVAX, DOT and ADA. These moves follow our significant sale of ETH in the $1,750 levels we made three weeks ago with great gains on ETH trade.
Short term view
There is now a potential short-term bullish confirmation, but to do so, we should wait for the price action to break and confirm above the $22,500 levels, where we have the upsloping support of our parallel channel acting as resistance. If we can confirm above $22,500, we should see a possible rally for Bitcoin in the short term.
Regarding our outlook for ETH, we might see ETH reaching back up to $1,950 levels, but the stock market should make a nice move to the upside before the end of August or the beginning of September, or we might see the continuation of the downside move for BTC to the lowers levels we mentioned.
Mid-term view
Nothing has changed in our mid-term view, with the 1st target of $17,500. Then the following levels could be $13,000-$12,000 for bitcoin. But for the breakdown move to continue and go to these levels, we should confirm below $19,500.
Other marketsÂ
S&P Futures made a descent move to the downside at the open on Sunday evening EST time, paving the way for a similar trend in the BTC market as price action.Â
The EURUSD is back below parity as the European economy is bracing for a challenging Fall season – geopolitical risk and energy shortage – and the Federal Reserve Chair Jerome Powell is expected to maintain the central bank’s commitment to fighting inflation at the Jackson Hole symposium later this week. This downtrend could potentially be a driver for BTC.Â
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