On August 6, 2019, the Bitcoin price reached a high of $12,325. A decrease ensued. The BTC price reached a low of $11,249 the next day. After a weak upward move, it again reached lows of $11,129 on August 11.
Will BTC continue to decrease or will it again reach $12,000? Continue reading if you are interested in finding out.
For our previous analysis, click here.
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Bitcoin Price: Trends and Highlights for August 12
- BTC/USD is trading inside a descending channel.
- It has been showing weakness in the weekly time-frame.
- The RSI has generated bearish divergence.
- There is support at $11,250 and $10,900.
BTC Price: Selling Pressure
A look at the weekly time-frame shows that last week’s rally ended in a similar position to prior ones.
The BTC price reached a high of $12,325 before decreasing and closing near $11,500.
This created a long upper wick.
Similar wicks were generated in the weeks of June 24-1 and July 8-15.
This is a sign that there is selling pressure at around $12,000.
Additionally, a look at the RSI shows signs of weakness.
While the Bitcoin price has seemingly made a double top, the RSI has generated a much lower value.
This is an indication that there is less strength in this upward move than in the prior one.
Divergence in the weekly time-frame is somewhat uncommon.
Also, the MACD has seemingly lost its power and has almost made a bearish cross.
However, a look at the moving averages shows that the price is still in an uptrend.
Since a bullish cross occurred at the beginning of April, BTC has been trading above both MAs.
So while BTC has shown strong signs of a reversal, it is still in an uptrend.
A look at the six-hour time-frame shows that the BTC price has been trading inside a descending channel since June 26.
At the time of writing, it was trading close to the resistance line.
Once the Bitcoin price reached the resistance line it immediately began to decrease.
Additionally, we can see one support area at $10,900.
The price has not yet reached it.
A look at the hourly time-frame gives us one more support area — albeit a minor one.
The support area is found at $11,250.
We can see that once BTC reached it, it generated long lower wicks.
Since the decrease, the Bitcoin price has failed to retrace past the 0.618 fib level — which is at $11,600.
The 0.618 level often acts as a final resistance in retracement attempts.
Combined with the resistance from the channel and the weekly analysis, this makes us think that it is likely that the current retracement attempt has ended at $11,600.
Therefore, a possible outline for future movement is given below:
BTC is likely to drop to the support line before beginning another upward move.
However, a breakdown to the second support area is likely.
Bitcoin Price Summary
The BTC price has been trading inside a descending channel since June 26.
According to our analysis, it is likely to trade around the current level before eventually breaking down and reaching the second support area.
Do you think BTC will reach the support area? 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.
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