On August 10, 2019, the Bitcoin price reached a high of $11,932, before beginning a rapid decrease that took it to $11,400. It traded around that level until August 13, when another decrease began. On August 15, it reached a low of $9522. It has been increasing since then.
At the time of writing, the Bitcoin price was trading close to $9900.
Will BTC continue to decrease or will it begin an upward move? 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 16
- BTC/USD has been decreasing since August 10.
- There is support at $9000-$9200.
- The 100- and 200-period moving averages have made a bearish cross.
- The BTC price is likely in the fifth and final wave of the current correction.
BTC Price Retracement
Once BTC reached the aforementioned low on August 15, it began an upward move.
The move took it all the way to the 0.5 fib level at $10,400, where it made a double top (bearish reversal pattern) and began a rapid decrease.
The decrease occurred with significant volume — dwarfing that of the previous bullish candlestick that took it from $10,100 to $10,400.
This is often a sign that sellers have more strength than buyers and the downward move is likely to continue.
Where will the BTC price find support?
One support area that is likely to initiate a reversal is outlined below:
It is found between $9000-$9200, having previously been reached on August 17 and 29.
A look at the 100- and 200-period moving averages (MA) supports a decrease towards this area.
They made a bearish cross on August 15.
Additionally, the Bitcoin price is trading below both.
The previous time this occurred (July 16) the price dropped from $11,000 to $9200.
A decrease towards this support area would likely complete the fifth and final wave of the correction, which began on August 10 when the price reached a high close to $12,000.
The full-wave count is outlined below.
Bitcoin Price Summary
The Bitcoin price has been rapidly decreasing since August 10.
According to our analysis, it is likely to continue decreasing until it reaches the support area outlined above.
Do you think the BTC price 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.
Images are courtesy of Shutterstock, TradingView.