On July 16, the Bitcoin price reached a high of $11,058. A decrease ensued. The next day, the BTC price reached a low of $9084. After reaching a similar low the next day, the price began a rapid upward move.

Is this move the beginning of an uptrend, or is it just a response to previous decreases? Keep reading below in order to find out.

For our previous analysis, click here.

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Bitcoin Price: Trends and Highlights for July 19

  • BTC/USD recently broke out from a descending channel.
  • It is facing resistance from the 10-day moving average.
  • There is resistance near $10,700 and $12,000.
  • BTC is possibly following a pattern from the 2018 crash.

Previous BTC Price Movement

Since reaching a high of $11,900 on July 13, the Bitcoin price has been decreasing — trading inside the descending channel outlined below:

On July 18, the price broke out from this channel.

The breakout transpired with massive volume, greatly increasing its significance.

Let’s take a look at a different time-frame to see if this move has any long-term implications.

Daily Candlestick

A look at daily candlesticks suggests that we do not yet have a confirmed upward move.

First, the highlighted portion of price movement above looks like a reversal pattern.

However, yesterday’s daily candle is still covered within the body of the previous bearish candle.

Furthermore, it looks as if this is just a retest of the previous support area from which we broke down on July 14.

A price close above $11,000 would invalidate this idea and will likely take us to the next resistance area near $12,000.

A look at the 10- and 20-day moving averages (MA) refutes the possibility of further increases:

A bearish cross transpired on July 13.

Since then, the Bitcoin price has been trading below both MAs.

Also, yesterday’s move was stopped once it reached the 10-day MA.

At the current time, it looks as if it might initiate a downward move.

To conclude, a look at a longer-term time-frame combined with moving averages suggests that this is just a response to previous price decreases.

Fractal

There is an interesting similarity between the price movement after the all-time high was reached in December 2017 and the current move.

During both moves, the price :

  • Underwent an A-B-C Correction after reaching a high
  • Initiated an upward move after the completion of the C wave
  • The upward move stopped at the 0.382 fib level of the entire drop

If the price movement is identical, the BTC price should make a lower high soon before resuming its downward movement.

Summary

The Bitcoin price recently broke out from a descending channel.

Even though the breakout transpired with massive volume, we believe that the price will soon continue its downward movement, after possibly making a lower high.

Do you think the BTC price will continue to increase, or are further decreases in store? Let us know in the comments below.

Valdrin Tahiri

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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