The Bitcoin (BTC) price began June with a decisive increase that led to a new yearly high on July 13. However, the price has corrected considerably since and broke down from a crucial horizontal trading range before the end of the month.
These three crypto traders employed different means to predict the local top and ensuing drop but arrived at a similarly accurate result. All achieving Bitcoin profits in July.
Elliott Wave Count Correctly Predicts Local Top
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend. The trading method accurately predicted the yearly top and ensuing decrease.
In the middle of July, Elliott Wave specialist @TheTradingHubb tweeted that the BTC price had reached a local top and it had begun a downward movement towards its range low of $29,000. While the bounce went higher than predicted, the BTC price had indeed reached a top and eventually fell to the range low.
Similarly, @AltStreetBet used a completed five-wave increase and a significant bearish divergence in the RSI to correctly predict the local top. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions, and to decide whether to accumulate or sell an asset.
A bearish divergence occurs when a price increase is accompanied by a momentum decrease. It often leads to significant downward movements, as was the case in BTC.
In both cases, the wave count was used correctly to predict the local top. Additionally, the presence of a horizontal range and the deviation above it added fuel to the possibility that the price will correct.
Since BTC now trades below the ranges support line, its reclaim is necessary to confirm that the bottom is in. Doing so will likely lead to an increase towards the yearly high, a movement with a magnitude of 7%.
Range High Leads to Rejection and Fall
The final crypto trader that made Bitcoin profits in July was IncomeSharks. The popular trader tweeted that the range high has acted as the top three times until now (red icons) and the trend cannot be considered bullish until bulls cause a breakout. The three rejections created a triple top, considered a bearish pattern.
That was not the case and the BTC price fell towards the range low afterwards. Moreover, it broke down from the range low on July 21, a sign of a bearish trend. The decrease occurred shortly after the Securities and Exchange Commission (SEC) announced that they will review Blacrockโs Bitcoin ETF.
Since the breakdown, IncomeSharks has stated that it is likely for the Bitcoin price to fall to a long-term ascending support line currently at $28,600. It remains to be seen if this will occur or if the BTC price will reclaim the $30,000 range low and increase to $36,000.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
