Bitcoin Holding Its Ground (Part 1) – Crypto Piece

Big Move Being Set

Despite a market-wide pullback, Bitcoin has been able to hold its ground very well. After rejecting from the downtrend line resistance, Bitcoin came back to test its 55-day EMA. It continues to hold this EMA as support for now. A break below would open the door for $60.5k support level to be revisited. However, as far as Bitcoin is in the defined range below, it is just undergoing consolidation.

Ethereum, on the other hand, has been unable to reclaim its 9, 21 and 55-day EMAs. After retesting the downtrend line, it failed to move past the green zone (between $3300 to $3550). Another retest of the downtrend line is possible. A break though would not be a good sign and would put back the $2854 level support in play. This support (IF reached) would be a major level that bulls would want to defend.

Bitcoin Fractal

We’ve found a very interesting Bitcoin fractal that might be at play here. We usually keep this type of content only for our paid members, but we’re sharing this for free to give you a glimpse of the type of content you get access to by becoming a paid member.

Bitcoin has been closely following the price action pattern from its early-2022 bear market correction. The trick here is that this price action is being happening in a flipped manner. The black line fractal on the right (in the chart below) is the same as early-2022 bear market correction (green box on the left side in the chart below), but we’ve flipped the price action. You can see how close the current price action is to this fractal, including the V-shaped drawdown that was experienced in June and July 2024.

If this fractal continues to play out, then we should expect some more consolidation in the ongoing range highlighted earlier followed by a break to new ATHs.

In the next section (for Paid Members), we’re going to present you with the evidence of why we believe Bitcoin is brewing a big move right now and what the liquidity conditions are suggesting. We’ll also take a look at on-chain data and intermarket dynamics to see if there is a directional bias that can be formed from them. Lastly (in Part 2), we’ll go through 3 Crypto-related stocks (Coinbase, CleanSpark and Marathon Digital) and also give you our proprietary Cycles Forecast for the month of August, so that you can prepare accordingly.