Throughout most of July 10, 2019, the Bitcoin price was trading above $12,800. However, at 15:30 (UTC +2) a massive downward move ensued. By the end of the day, the price had reached values below $11,600, a decrease of more than 10 percent.
This downward move has continued on July 11.
Where will the price go next? Keep reading below in order to find out.
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Bitcoin Price: Trends and Highlights for July 11
- BTC/USD broke down from an ascending wedge.
- The breakdown occurred with massive volume.
- Daily moving averages are close to making a bearish cross.
- There is support near $11,000 and $10,400.
Previous Bitcoin Price Movement
Since reaching a low of $9728 on July 2, the BTC price has been trading inside the ascending wedge outlined below.
The aforementioned decrease on July 10 caused the price to break down from the wedge.
The breakdown occurred with very significant volume.
An interesting development has been the fact that the price did not bounce even slightly at the support line. Rather, it broke down and continued to decrease.
Combined with volume, this is a sign that the breakdown is strong and the sellers have control.
Where is the Bitcoin price going to next?
A look at the moving averages (MA) supports continued price decreases. However, confirmation has not yet been given.
The price is trading right in line with the 10- and 20-day MAs, which are very close to each other.
Since the MAs are lagging indicators, continued decreases throughout the next few days would cause a bearish cross, which would confirm that we are in a correction.
The MACD has already started to turn downward, possibly making a bearish cross over the next few days.
Beginning from the low on July 2, which marks the start of the ascending wedge, we used a Fibonacci retracement tool to find possible support areas.
At the time of writing, the Bitcoin price is holding on to the 0.5 fib level of the entire drop. Besides, the long lower wick from the previous six-hour candle, the price has not shown any signs of reversal.
There is no bullish divergence developing, even in short-term time-frames.
The next support levels are found near $11,000 and $10,400.
The latter is a more significant support area and has previously provided support on June 22 and 27.
A look at the daily time-frame shows that yesterday’s decrease occurred at a very significant volume.
The volume was the highest since the June 26 decrease.
Furthermore, a look at the weekly time-frame shows that the price is currently creating a doji, either bullish or bearish.
A similar doji was created in the week of June 24-30.
A look at these candles shows that there is significant selling pressure above $12,000 since we have not yet had a weekly close above this value.
Also, as a response to the prior rapid increases since April, this could be the beginning of a correction.
The BTC price recently broke down from an ascending wedge.
Moving averages support continued Bitcoin price decreases.
A long-term candlestick analysis shows that it is possible that this is the beginning of a longer correction.
The closest short-term support areas are found near $11,000 and $10,400.
How much longer do you think BTC will continue to decrease? Let us know in the comments below.
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.