BeInNews Academy Ltd © Street: Suite 1701 – 02A, 17/F, 625 King’s Road, North Point. Hong Kong.
On September 6, theprice reached a high of $10,933, A rapid decrease ensued, and the price reached a low of $10,208 during the same day. After a gradual retracement to $10,600 on September 8, BTC continued its decrease, albeit at a much slower rate.
At the time of writing, BTC was trading at $10,000.
Will it continue to decrease or will it find support above $10,000? Continue reading below if you are interested in finding out.
For our previous analysis, click here.
A look at the hourly time-frame shows that BTC has been trading inside a descending wedge since September 6.
At the time of writing, it was trading very close to the support line of the wedge.
The descending wedge is considered a bullish pattern, making a price breakout more likely.
Taking a slightly longer-term view, we can see two support areas, which are found at:
The $9800 support area has gained more significance due to the fact that once the price reached the area it created a long lower wick and immediately moved back upward.
Additionally, while the support area of $10,000 has been broken, the price has not reached a close below it.
Looking at the 15-minute chart, we can see that the movement during the long lower wick is very similar to a morning star, which is considered a bullish reversal pattern.
It was followed by a bullish engulfing candle, indicating that the price might soon begin an upward move.
In order to better analyze the possibility of a reversal, we have incorporated the RSI into the analysis.
A bullish divergence has been developing during the most recent lower lows of September 10 and 11.
The fact that it is occurring in the support line of a bullish pattern increases its significance.
Combined with the rest of our analysis, it makes it likely that a breakout will occur.
If it does, where will the price go?
One resistance area is outlined below:
It is found at $10,400.
We believe it is likely that the price will reach it.
The Bitcoin price has been trading inside a descending wedge.
According to our analysis, BTC is likely to reach it.
For trading purposes, we consider BTC a buy only for short-term time-frames.
For the medium to long term, we still believe the price will reach values close to $9400.
Do you think the Bitcoin price will break out from the wedge? 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.
Do you want to Be In Crypto?Join our Telegram Trading Group for FREE Trading Signals,a FREE Trading Course for Beginners and Advanced Tradersand a lot of fun! Images courtesy of Shutterstock, TradingView and Twitter.