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On September 6, 2019, theprice reached a high of $10,933. A rapid decrease followed, causing the price to reach a low of $10,005 on September 11. After a failed attempt at initiating a reversal, BTC resumed its downward movement on September 18.
At the time of writing, the Bitcoin price was trading close to $9800.
Will Bitcoin continue to decrease or is there a reversal in store? Keep reading below in order to find out.
For our previous analysis, click here.
A look at the hourly chart shows that BTC had been trading inside a symmetrical triangle since July 30.
On September 19, the BTC price broke down from this pattern.
The breakout was swift and the price reached a low of $9671 before increasing slightly.
Additionally, we can see one support area near $10,000.
The BTC price is attempting to initiate a reversal at this area. Will it be successful?
Looking at the daily chart, we can see that BTC has been trading inside a descending triangle since June 26.
The support line of the triangle is at $9400.
Incorporating daily moving averages (MA) into the analysis gives us several important pointers as to where the price is heading.
First, the 10- and 20-day MAs have made a bearish cross and are offering resistance to the price.
This suggests that further price decreases are in store — but, we can see that the price has found support above its 100-day MA.
This MA previously offered support to the price on August 15 and September 11.
However, it failed to do so on August 30 when the price decreased below it for a short period of time.
At the time of writing, BTC was trading right in line with the MA.
It is very likely that the price continues trading slightly above its 100-day MA but below its 10- and 20-day ones.
Going back to the hourly chart, we can see that the price is possibly trading inside a descending channel, since reaching the high discussed in the introduction.
However, due to the presence of several wicks, the slope of the lines can be different, especially the support line.
For the future, we believe that the price will continue decreasing at the rate predicted by the channel.
First, it is likely to reach the resistance line which is currently at $10,100.
The BTC price recently broke down from a symmetrical triangle, and is currently trading inside a descending channel.
According to our analysis, it is likely to continue trading inside the confines of this channel.
For hypothetical trading purposes, we consider BTC a sell if it retraces and reaches prices close to $10,000-$10,100.
Do you think the Bitcoin price will reach $10,000 or will it decrease to $9400? 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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