On July 17, 2019, the Bitcoin price reached a low of $9084. A rapid increase began the next day. By July 21, BTC had reached a high of $11,098. It has been decreasing since.
At the time of writing, it was trading near $9600.
How long will the decrease continue for BTC? 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 24
- BTC/USD broke down from a descending wedge.
- It is trading inside a descending channel.
- Daily moving averages are bearish.
- There is support near $9200 and $8600.
Previous BTC Price Movement
Since reaching the aforementioned high on July 21, the BTC price has been decreasing — trading inside the descending wedge outlined below:
On July 24, BTC broke down from the wedge.
The breakdown transpired with significant but not extreme volume.
Where will the Bitcoin price find support?
Current Bitcoin Price Pattern
A look at the daily time-frame shows that BC has been trading inside a descending channel since reaching a high of $13,242 on June 27.
Both the resistance and support lines have been touched twice.
The upward move which began after the second time the support line was touched was weak and only reached halfway to the resistance line.
At the time of writing, the BTC price was decreasing towards the support line.
A look at moving averages suggests that the price will eventually reach it.
The 10- and 20-day MAs have made a bearish cross.
The Bitcoin price is trading below them, facing very close resistance from the former.
Additionally, the 100-day MA is currently at $8400 — coinciding with the support line of the channel.
This further increases the significance of the support line.
A closer look at Bitcoin’s price movement shows that the recent decrease has broken a strong support level and has some bearish implications.
On July 18, the BTC price was trading near $9200, before reversing and creating a bullish engulfing candlestick.
The long lower wick was an indication of significant buying pressure. It looked as if the price was going to reach the resistance line.
However, the recent decrease caused the price to fall $9800, effectively erasing the previously gained bullish momentum.
Two areas that could be appropriate for the beginning of a reversal are outlined below.
The first support area is found near $9200. A decrease in this area would effectively create a triple bottom pattern. However, due to the intensity of the decrease, we do not believe it will be effective in initiating a reversal.
The second support area is found near $8600. It corresponds with previous highs and the support line of the channel. We believe that the price will eventually reach this area.
The BTC price has been decreasing since July 22.
It is trading inside a descending channel.
According to our analysis, it is likely to reach the support area outlined above.
Do you think Bitcoin will reach the support area? Let us know in the comments below.