On September 2, 2019, the Bitcoin price reached a low of $9754. A rapid upward move ensued and the price reached a high of $10,766 the next day. This represents an increase of sightly more than 12 percent.
Since then, BTC has been trading between $10,400 and $10,700.
Where will the Bitcoin price go to next? Continue reading if you want to find out.
For our previous analysis, click here.
Bitcoin Price: Trends and Highlights for September 6
- BTC/USD is trading inside a descending triangle.
- Daily moving averages are in the process of making a bullish cross.
- BTC is trading inside a short-term ascending triangle.
- There is resistance at $11,000.
A look at the daily time-frame shows that BTC has been trading inside a descending triangle since June 26.
The descending triangle is considered a bearish pattern, making a price breakdown more likely.
At the time of writing, it was trading very close to the resistance line of the pattern.
A look at the 10- and 20-day moving averages shows that a bullish cross has occurred/is in the process of occurring.
The previous time this happened, on August 4, BTC began a rapid upward move.
However, it is worth mentioning that a bullish cross has not yet been confirmed.
A rapid price decrease later today could cause a rejection and subsequent price movement below it.
A closer look at the two-hour time-frame reveals that BTC has been trading inside an ascending triangle since September 3.
At the time of writing, it was trading very close to the resistance line, having previously made two unsuccessful attempts at breaking out.
Additionally, the end of the pattern is projected to occur on September 7, indicating that a decisive move will soon occur.
A look at the moving averages and volume indicates that the current move has some strength.
The Bitcoin price is trading above both the 10- and 20-period moving averages, which have previously made a bullish cross.
Additionally, we can see that volume has been higher on bullish candles.
While the difference is not extremely significant, combined with the creation of a bullish pattern and previous price movement it makes us believe that a breakout is more likely.
A possible outline for future price movement is given below.
We believe the Bitcoin price is likely to break out and reach the resistance line at $11,000.
Afterward, it should begin to decrease.
The Bitcoin price has been trading inside a short-term ascending triangle.
According to our analysis, it is likely to break out and reach the resistance line at $11,000.
For trading purposes, since the upward move has been a parabola, staying out of the market until clearer and more profitable support and resistance areas emerge may be a good idea.
Do you think the Bitcoin price will break out from the triangle? 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.
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