BTC/USD: Bound for a Small Correction 4H (Aug.01)

X Force Global Analysis:


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In this analysis, we analyze Bitcoin's 4H chart, and assess its technicals to determine its bullish and bearish probabilities.

Bullish Evidence

- To begin with, Bitcoin's prices are currently trading way above significant support zones
- It has managed to test and bounce off of the 10.5k support, which confirms that the trend is indeed bullish
- Prices are trading above the Exponential Moving Average (EMA) Ribbon, and the Ichimoku Cloud support

Bearish Evidence

- However, there is a clear bearish divergence, with higher highs on the price and lower highs on the RSI
- While the Moving Average Convergence Divergence (MACD) shows potentiality for a golden cross, the trend lacks momentum for confirmation
- The Stochastic Oscillator is also showing signs of a potential corrective trend

Market Sentiment:

The long short ratio is at 71 to 29, with significantly more long positions than shorts, indicating strong signs of bullish sentiment in the market.

What We Believe

While there are signs of a potential correction, the fact that we have managed to secure the 10.5k support indicates extreme bullishness. It's also important to note that bullish divergences formed during strong uptrends have historically played out to a minimal degree, as Bitcoin continued to rally upwards after a very small correction.

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