By Gabriel Ojimadu, Alpari
On Wednesday the 1st of August trading on bitcoin closed down. That being said, buyers managed to recover most of their losses after hitting a new low. As a result, a candlestick with a long tail was formed. Because of its large body, it does not count as a reversal.
Today I expect the continuation of the upward correction to the 7,830-8,000 USD zone. The zone is a strong resistance. If buyers can pass it, then the change from the bull phase to the bearish will be delayed for three days.
According to the forecast, I had envisaged bitcoin to grow to 7,920 USD. There is such potential for the emerging price model, although this would hinder the continuation of the downward movement. If the price increase stops at around $7,830 and the price bounces from there by 1.5%, then be prepared for $7,000 to be tested.
Earlier, we reported that the XBTUSD pair had begun a phase of decline, and if the pressure on bitcoin in the coming days increases, then buyers would need to defend the level of $6,800, otherwise you can forget about the rally at the end of the year.