Thursday , August 18 2022
Home / Altcoins / Bitcoin Eyes $10,500 After Losing Crucial Support Line: BTC Price Analysis

Bitcoin Eyes $10,500 After Losing Crucial Support Line: BTC Price Analysis

Summary:
Bitcoin’s price had seen a four-day decline of over 50, while the altcoins suffered even harder.Despite that Bitcoin is currently trading around the consolidation range from a week ago, we cannot ignore this week’s false breakout to ,500. This turned to be a fake-out, and the bearishness that came out of this is clearly seen on the following days.As can be seen on the 4-hour chart, BTC was forming a bullish triangle (K as an upper angle), and even after the above mention false breakout, the formation was kept until yesterday.The triangle pattern got broken around 700, sled down to the 600 support, retested the triangle (this time as resistance): From there, the way to another leg down was quick.BTC/USD 4-hour chart. Source: TradingViewAs of writing these lines, Bitcoin found

Topics:
Yuval Gov considers the following as important: , , , , ,

This could be interesting, too:

Mandy Williams writes Asset Manager Monochrome Receives Approval to Launch Spot Bitcoin ETF in Australia

CryptoVizArt writes Here’s the First Support if Bitcoin Fails to Break Above K (BTC Price Analysis)

CryptoVizArt writes Bitcoin Price Analysis: Holding This Range Can Lead a Quick Move Towards K

Jordan Lyanchev writes Bitcoin Touched K for the First Time in 2-Months: Shiba Inu Soars 15% (Weekend Watch)

Bitcoin’s price had seen a four-day decline of over $1150, while the altcoins suffered even harder.

Despite that Bitcoin is currently trading around the consolidation range from a week ago, we cannot ignore this week’s false breakout to $12,500. This turned to be a fake-out, and the bearishness that came out of this is clearly seen on the following days.

As can be seen on the 4-hour chart, BTC was forming a bullish triangle ($12K as an upper angle), and even after the above mention false breakout, the formation was kept until yesterday.

The triangle pattern got broken around $11700, sled down to the $11600 support, retested the triangle (this time as resistance): From there, the way to another leg down was quick.

Bitcoin Eyes $10,500 After Losing Crucial Support Line: BTC Price Analysis
BTC/USD 4-hour chart. Source: TradingView

As of writing these lines, Bitcoin found support upon the $11400 level. The latter was the July high that served as resistance before the first surge to $12K on the first day of August. The technical analysis states that strong resistance becomes strong support, and so far, this is seen in the case here.

On the macro level: The bigger picture is indeed bullish, but there is a warning sign on the macro level as well. looking at the following daily chart, there is the yellow ascending trend-line, which started forming in July 2019. Bitcoin price is now trading below the line for the first time in ten days.

Key Support and Resistance For Bitcoin’s Short-term

Today’s candle is not over yet, and we might see a correction to the $11,600 – $11,800 levels: Stochastic RSI is at its oversold levels on both 4-hour and 1-day chart, daily RSI is facing huge support line around 50-52. However, until resettling above $12K – $12.1K, in my opinion – the correction is not over yet.

From the bearish side, the first level of support is today’s low, $11,400. If Bitcoin fails to hold, then $11,200 (weak) and $11,000 are the next possible support areas.

Further below lies $10,800 and $10,500, which is the prior 2020 high, along with the 50-days moving average line (the pink line on the daily chart).

Total Market Cap: $360.3 billion

Bitcoin Market Cap: $214 billion

BTC Dominance Index: 59.4%

*Data by CoinGecko

BTC/USD BitStamp 1-Day Chart

Bitcoin Eyes $10,500 After Losing Crucial Support Line: BTC Price Analysis


Leave a Reply

Your email address will not be published. Required fields are marked *