Bitcoin Price Analysis: Bullish Hammer Suggests a Short-Term Upward Move for BTC/USD

Will the Bitcoin price continue to decrease or is there a reversal in store? Continue reading if you want to find out the answer. For our previous analysis, click here.

Bitcoin Price: Trends and Highlights for September 24

• BTC/USD is trading inside a descending channel.
• There is support at $9700.
• There is bullish divergence developing in the RSI & MACD.
• BTC has made a bullish hammer.
• The price has likely created a double bottom.

Current Bitcoin Price Pattern

Looking at the two-hour chart, we can see that BTC has been trading inside a descending channel since September 6. Due to the presence of several wicks, both the resistance and support lines are not very clear. Therefore, it is possible that the Bitcoin price will follow a slightly different slope. Additionally, we can see that the price is currently at a significant support level — found at $9700. This level is found by previous highs at the beginning of September. Furthermore, it coincides with the 0.786 Fib level of the entire upward move. This makes it a very suitable level for the initiation of a reversal. Let’s take a look at technical indicators and see if that is likely.

Technical Indicators

Looking at the RSI & MACD shows us that a reversal might soon occur. Both of them have been generating bullish divergences during the similar lows of September 19 and 24. Additionally, this counts as a double bottom — which is considered a bullish reversal pattern.

Candlestick Analysis

Looking closer at Bitcoin price movement, we can see long lower wicks during the aforementioned lows. This is a sign of buying pressure inside the support area. Furthermore, BTC created an hourly bullish hammer. Since then, it has made what looks like a higher low and is attempting to move higher.

Future Movement

An outline of possible future Bitcoin price movement is given below. Bitcoin is likely to increase towards the resistance line before decreasing towards the support area. While this will not necessarily happen today, we believe the support area will eventually break and the price will get to $9400.

Bitcoin Price Summary

The Bitcoin price has been trading inside a descending channel. According to our analysis, it is likely to undergo a short-term increase before a longer downward move. For hypothetical trading purposes, BTC is considered a sell near $10,000. We expect it to eventually reach $9400. Do you think the Bitcoin price will reach $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.