While global equity markets continue to experience shockingly high volatility in August, Gold, Silver and Bitcoin have received a lot of renewed attention this past week. As you know, I religiously follow Fundstrat equity strategy and there cryptocurrency research – here you will find selected pieces of their latest crypto analysis.
Crypto Technical Analysis Strategy
BTC remains in a broad summer trading range similar to Q3 2016
- BTC’s correction/consolidation continues with BTC stalling at its summer downtrend, breaking support at 11K and its rising 50-dma over the past day. A test of next support near 10K is now underway. A shallow downtrend channel is now in place (red shaded area) that is likely to persist through Q3. Next support below 10k is at 9K which should drive daily RSI into oversold territory supportive of another rebound within BTCs summer consolidation. Given 4-hour RSI is deeply oversold and showing early evidence of bottoming/diverging, we expect a bounce to develop. Trading resistance is at 11K at the 15-dma (90-hour) sma. See charts below and slides 3-4 for more detail.
- Bottom line: We continue to view the current pullback as a broad consolidation/correction similar to what developed in Q3 2016. Our expectation is 9-10K support will hold with further sideways trading into late Q3. Remain patient.
Look for more from Fundstart and its team (Rob Sluymer, Sam Doctor) and others in the coming weeks. If you invest in US equity and digital currencies, you might want to start following them.