7 August 2020

BTCUSD daily chart

Key takeaways: BTC Head & Shoulders pattern sets target at $16,200. Square accumulated $1,5 billion in bitcoin over the past year. Goldman Sachs is now pro crypto

On the daily chart we can see that bitcoin price has formed a reverse Head & Shoulders pattern. BTC has already broken out of the pattern to the upside confirming the potential target that is equal to the distance between the lowest part of the head and the neckline. This sets the target at $16,200 long term and most importantly it aligns with the 0,786 Fibonacci Retracement level. Of course, there are some resistance levels on the way to that target at $12,000, $12,600 and a significant 0,618 Fibonacci Retracement resistance at $13,400.

Big retail money keeps coming to the space. Crypto research company Messari reports that over the past year Square purchased $1,5 billion worth of bitcoin. Jack Dorsey, the founder of Twitter and Square not only speaks fondly of BTC on social media, but also actively accumulates it as demand for buying bitcoin among CashApp users increases.

Goldman Sachs is now pro crypto

Goldman Sachs is now changing its opinion and embracing crypto after being sceptical about it for years. Their new Head of Digital Assets, Mathew McDermott, acknowledges the inevitability of blockchain technology. He says “In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on-chain. So what you’re doing today in the physical world, you just do digitally, creating huge efficiencies.” They are now at the beginning of exploring the possibility to create their own fiat digital token.

ETH/USD daily chart

07 august ethusd daily

Ether’s growth slowed down and the trading volume decreased significantly. The price is currently supported by 0,236 Fibonacci Retracement level at $396. Lucid SAR pressuring ETH from the top now calls for a correction. The closest support for a downturn seems to be at the $365 price point.

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