On August 30, 2019, the Bitcoin price reached a low of $9387. An uptrend began, that lasted until September 6, culminating with a high of $10,900. The price has been decreasing since. At the time of writing, it was trading close to $10,300.
Where will BTC go to next? Continue reading if you are interested in finding out.
For our previous analysis, click here.
Bitcoin Price: Trends and Highlights for September 9
- BTC/USD is trading inside a descending triangle.
- There is support at $10,275 and $10,000.
- The price has shown signs of weakness.
- It is trading below the 100- and 200-hour moving averages.
Signs Of Weakness
A look at the daily chart shows that BTC has been trading inside a descending triangle since June 26.
The period discussed in the introduction is highlighted below:
The descending triangle is considered a bearish pattern, making a price breakdown more likely.
Additionally, we can see another sign of weakness.
The price has reached the resistance line three times, decreasing towards support each time it has done so.
However, on September 6, BTC fell short of the resistance line, decreasing sharply and creating a bearish candlestick.
This is a sign of weakness since the price showed it does not have enough strength left even to reach the resistance line.
Going back to the short-term movement, we can see two significant support areas that are found at :
The $10,000 support area also coincides with the 0.618 fib level, making it a very suitable level for the initiation of a reversal.
At the time of writing, BTC was inside the first support area at $10,275.
Previously, it has reached it three times, creating a long lower wick and moving upward each time.
However, it is now inside the area and has reached multiple bearish closes within it.
This is a sign that the buyer’s support is dissipating, and the price might soon break down.
Incorporating moving averages (MA) into the analysis, we can see that BTC is trading below both the 100- and 200-hour MAs.
However, they have not yet a bearish cross.
One would likely act as confirmation that the downtrend has begun.
Bitcoin Price Summary
The Bitcoin price is trading inside a long-term descending triangle.
It is currently inside a minor support area.
According to our analysis, it is likely to break down and reach the second support area at $10,000.
For trading purposes, we do not consider Bitcoin a good buy until it reaches the support line of the triangle near $9400.
Do you think the Bitcoin price will break down from the support area? 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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