Ok, Bitcoin has had a very nice run from 1800 all the way up to 4400, but what will happen now? Well, I believe that it is possible that we could see a fall back to around 3000. But, lets have a look at the 4-hour chart first:
Comment: If you look at the circled moving average within the bollinger band, you can see that it is already falling. That is why I think Bitcoin will fall more from here. Could I be wrong, absolutely. But if so, it will have to make a very strong move up from here pretty soon.
But lets look at a longer time frame, here is the daily chart:
Comment: From this chart, I want to show you two support areas. The higher support area is 3600 and that is the bollinger band average. It is not very strong, but it is some support in that area.
However, the major support zone is a little bit further down. It is located around 2960 USD and that is the old All Time High area where Bitcoin were before the hard fork.
So, if Bitcoin will continue to fall from here, it is more likely to go back to around 3000 than 3600 in my opinion.
Lets follow this closely, if it happens, it could be a quick dip, nobody knows, but if August is supposed to close on a positive note, it has to be a quick visit to this area and then go back up before the end of the month.
Happy trading!