On September 18, 2019, the Bitcoin price reached a high of $10,276. A rapid decrease ensued and BTC reached a low of $9655 the next day. However, it immediately reversed and reached a high of $10,487 on September 19. It has been decreasing since.
Where will the Bitcoin price go to next? Continue reading below if you want to find out.
For our previous analysis, click here.
Bitcoin Price: Trends and Highlights for September 20
- BTC/USD is in the process of completing a recurring pattern for the third time.
- The Bitcoin price has reached the resistance line of a descending triangle.
- It is facing resistance from the 10- and 20-day moving averages.
- There is resistance at $10,500.
Recurring Bitcoin Price Pattern
An interesting development for BTC is the fact that this is the third time that the Bitcoin price has followed a similar pattern of decreases and increases.
BTC has followed a sharp decrease with an even sharper increase, before initiating a gradual downward move reaching lows well below those of the original decrease.
The Bitcoin price has acted in this manner on three occasions — September 9, 16 and is on the process of doing so on September 19.
If the price acts in the same manner, it will reach a low near $9400.
Let’s see if this movement fits in with the longer-term picture.
A look at the daily chart shows that BTC has been trading inside a descending triangle.
The descending triangle is considered a bearish pattern, making a BTC price breakdown likely.
Additionally, it is currently very close to the resistance line of this triangle.
Until now, it has touched it five times, and a decrease has followed each time.
The support line of the triangle is near $9400.
A look at the daily moving averages (MA) further strengthens the bearish sentiment.
The 10- and 20-day MAs have made a bearish cross on September 16.
While the price increased yesterday, it failed to reach a close above the MAs.
It is currently trading below and facing resistance from both of them.
Combined with the recurring pattern and the creation of a bearish trading pattern, this makes us believe that BTC will decrease towards the support line.
Looking at the hourly chart, we can see that BTC is not following any trading patterns.
One resistance area is outlined, which is found near $10,500.
Since BTC has not yet begun to show any signs of weakness, we would expect it to do a type of retracement towards $10,500.
Afterward, it should begin its downward move towards $9400.
Bitcoin Price Summary
The Bitcoin price is trading inside a descending triangle.
According to our analysis, it is likely to reach the support line of this triangle.
For hypothetical trading purposes, we consider BTC a sell near $10,300.
Do you think the Bitcoin price will reach the support line of 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.