Bitcoin Price Analysis: BTC/USD Completing An Evening Star

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This is a short-term update to yesterday’s Bitcoin price analysis. For the full analysis, please click here.



You can read more about the BTC price and volume here.

Evening Star

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.

Current Channel

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!

If you are interested in trading Bitcoin on our partner exchange, follow this link to get all signed up on XCOEX.


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. 

Images are courtesy of Shutterstock, TradingView.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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