Technical Analysis of BTC/USD for July 31, 2020:

Crypto Industry News:

The Australian Securities and Investments Commission (ASIC) asks people to be cautious about Bitcoin scam sites promoted by celebrities.

According to the commission's public warning, the Australian regulator has received a series of reports of bogus crypto sites allegedly being promoted by well-known companies, new sites, and government agencies. Some even seem to have the backing of national celebrities like Waleed Aly, Mike Baird, Dick Smith, and Virginia Trioli.

ASIC provided a number of examples as part of its warning. One of them mentions Bitcoin Evolution as a bogus cryptocurrency trading bot. The scam site was reported by other countries as well, including the Philippines and Malta. Other similar scams operate under the names Bitcoin Revolution and Bitcoin Trader.

These sites are advertised using fake celebrity endorsements that pop up on social networks such as Facebook, Instagram, LinkedIn, and Twitter. When an investor clicks on an article or ad, it is often sent to a "mirror site" - a bogus version of a legitimate news site such as ABC News.

ASIC explained that scammers combine online search terms to generate fake news articles and social media ads that contain fake recommendations from celebrities or the media.

Search engines and news sites often republish these articles or ads, perpetuating the excitement and interest in the cryptocurrency. This drives a shopping frenzy, and as more and more people buy the cryptocurrency, its value goes up and other traders grab on to what drives it up even more, then scammers sell their own share of the overvalued cryptocurrency. This causes its value to decline and victims hope to get back their original investment.

Australians recently reported 1,810 cryptocurrency fraud cases in 2019, totaling over AU $ 21.6 million ($ 14.9 million). According to a study by Scamwatch, a splinter of the Australian Competition and Consumer Commission, younger Australians between the ages of 25 and 34 were the hardest hit by cryptocurrency investment scams.

Technical Market Outlook:

Since the BTC/USD pair had made a possible Double Top price pattern at the level of $11,317, the market started to consolidate the recent gains and is still doing so.The momentum is still strong and positive, but is decreasing. In a case of a up wave extension, the next target is seen at the level of $11,855 and $11,500. The nearest technical support is located at the level of $10,855 and $10,430. There is the last day of the mont and current monthly candle looks bullish.

Weekly Pivot Points:

WR3 - $11,362

WR2 - $10,720

WR1 - $10,360

Weekly Pivot - $9,731

WS1 - $9,314

WS2 - $8,690

WS3 - $8,269

Trading Recommendations:

The volatility on Bitcoin has significantly increased, but still the larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key long-term technical support is located at the level of $7,897.

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