With the end of July now just a few days away, and monthly prices set to be locked in, there are a number of factors to take into consideration for crypto traders.
And that’s according to expert South African crypto enthusiast and trader Tim Godfrey. After laboriously viewing a host of popular crypto YouTube channels, the South African trader has made a number of intriguing observations about the current market. Using these observations, Tim formulated, in layman’s terms, an interpretation of where the crypto markets currently stand, specifically Bitcoin.
Tim started off by mentioning that the recent Bitcoin price pump has been driven by Asian traders, while altcoins are down as a result of BTC dominance, that is up from 59% to 64%. He states that the BTC bull run has started and is being driven by US Dollar weakness and is being fueled by FOMO. The recent move up has been characterised by shorter consolidation periods which shows the presence of this FOMO, public hype, and emotion.
Tim believes that the price of ETH has increased too fast as a result of the recent hype surrounding various Decentralised Finance (DiFi) protocols, and that it should pull back to the $300 region, providing a good opportunity for traders to accumulate.
The crypto enthusiast stated that there are, however, CME futures gaps at $11,795 and $9,735, which could provide some concern. A retracement to fill the bottom gap could precipitate further falls to $6,900, $5,600 and possibly even $4, 380. Having said that, critical support is present at $5,500, it is unlikely that BTC will drop to $4,380. The 50, 100 and 200 EMA’s are lining up in good order, signalling that a major bull run is likely. We do, however, need a minimum monthly close above $9,650.
Tim believes that the current target is the golden pocket fib level, between $13,300 and $13,800. There remains, however, a chance for a possible retracement to the week’s 21 MA of $8,500. If the support is created at $11,300 then the next target is $15,000, which will then extend to $18,000 and possibly then $30,000. Tim made it clear to be careful of “wick fishing” or “scam wicks” that could take out long positions.
The South African then went on to mention that his research and data analysis gives him reason to believe that there will be a new bullish movement in the next 47 months; with a peak of $100, 000 in about November 2022.