Conclusion for today’s Bitcoin technical analysis:
Price closing below ~9320.00 implies lower prices in Bitcoin.
A log scale of Bitcoin is presented on its Daily Timeframe with over 8 months of price action displayed. Analysis includes the use of moving averages (50 and 200), chart patterns, as well as support and resistance levels.
The trendline is the most important chart pattern and a look at the Daily timeframe shows a break to the downside of the trendline. This implies a bearish bias and weakening bullish strength or momentum.
The meandering price action from June 26, 2019 to current date ever since price reached a peak of ~13,880 can be described using a symmetrical triangle.
Formation of the aforementioned chart pattern indicates a stalemate between Bitcoin bulls and bears. Use of the width of the pattern for price projection requires switching back to an arithmetic scale. The width can be employed to estimate a profit target on eventual resolution out of the triangle (bullish or bearish).
Price action breaking below ~9320.00 (price low of the August 29, 2019 Daily candle) indicates a confirmation of the triangle with lower prices expected to follow.
The slope of the 50 Daily moving average also supports the notion of a bearish move favored over any bullish attempt. Any retracement to the upside is therefore expected to be challenged at the 50 moving average, and the 200 Daily moving average offering support for the price of Bitcoin.
The 200 Daily moving average coincides with horizontal support levels between 7568.04 and 7215.52. A sizeable correction to the upside could therefore follow and/or bullish momentum to force a resumption of the current uptrend. A break below the 200 Daily moving average will spell further trouble for Bitcoin.
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Our previous Bitcoin technical analysis before the current price rally was also posted for FREE and can be found here.