On August 29, 2019, the Bitcoin price reached a low of $9511. A rapid upward move took it to a high of $10,933 on September 7. BTC has been decreasing since.
Where will the Bitcoin price go to next? Keep reading below in order to find out.
For our previous analysis, click here.
Bitcoin Price: Trends and Highlights for September 17
- BTC/USD is trading inside a short-term symmetrical triangle.
- There is support at $9400, $9800 and $10,000.
- BTC is trading inside a long-term descending triangle.
- The daily moving averages have made a bearish cross.
Current Bitcoin Price Pattern
Looking at the two-hour chart, we can see that BTC has created a short-term symmetrical triangle.
It has been trading within its confines since August 29.
The Bitcoin price is approaching the end of the triangle, at which point a decisive upward or downward movement should occur.
Let’s take a look at a different time-frame and predict the direction of the move.
Bearish Or Neutral?
A look at the daily chart shows that BTC has been trading inside a descending triangle since June 26.
However, the support line is not perfectly clear.
It is possible that BTC is following a slightly ascending support line, which would create a symmetrical triangle.
While this does not have a significant effect on the support level, since the lines are only slightly apart from each other, the symmetrical triangle is a neutral pattern, while the descending one is bearish.
Therefore, the possible presence of a symmetrical triangle significantly reduces BTC’s bearish sentiment.
Incorporating the daily moving averages (MA) and the MACD into analysis suggests that further price decreases await BTC.
The 10- and 20-day MAs have just made a bearish cross.
The Bitcoin price is trading below both of them and facing very close resistance from the former.
Additionally, it seems as if the MACD has been rejected by the “0” line.
It has begun to decrease and is possibly setting itself up for a bearish cross.
If that were to occur, it would confirm that a downtrend has begun.
In case a breakdown occurs, two support areas are traced below.
We believe the Bitcoin price will break down within the next two days.
Since the $10,000 support area is very close to the support line, we do not think it will be successful in holding up the price.
Rather, BTC is likely to reach $9800, and possibly fall to the horizontal support line at $9400.
Bitcoin Price Summary
The Bitcoin price is trading inside a symmetrical triangle.
According to our analysis, it is likely to break down and reach at least one of the support areas outlined.
For hypothetical trading purposes, we consider BTC a sell close to $10,300.
Do you think the Bitcoin price will break out or break down 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.