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The price of Bitcoin is in the process of creating an evening star bearish reversal pattern.
We stated yesterday that:
Last week’s candlestick was a bearish doji that resembled a bearish shooting star. This is a likely reversal candle.
If the pattern proves to be correct, this week’s candle should be bearish engulfing and take us to between $8000 – $9000.
At the time of writing, the Bitcoin price was trading near $9800 — right on the 0.382 fib level of the entire upward move.
The next level of support is found at the 0.5 fib line near $8800. It also coincides with the previous resistance at the end of May.
Will the current support level hold? Let’s take a closer look in the short-term.
The price is currently trading inside the descending channel outlined below.
At the time of writing, it was trading right on the support line. While it is possible that the support line will initiate a bounce towards the resistance, there is no bullish divergence of any kind yet.
Therefore, we believe that the Bitcoin price will continue to decrease at the rate predicted by the channel.
Bitcoin Price Summary
The price of BTC has been decreasing significantly over the last two weeks. It is currently trading inside a descending channel.
In a weekly time-frame, it is completing an evening star bearish reversal pattern.
What do you think will happen to the price of BTC? Let us know in the comments below!
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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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