On August 15, 2019, the Bitcoin price reached a low of $9522. An upward move ensued and BTC reached a high of $10,471 — an increase of 10 percent from the aforementioned low. It traded inside this range for four days, before another upward move was initiated.
At the time of writing, Bitcoin was trading close to $10,800.
How long will the BTC price continue to increase? Continue reading if you are interested in finding out.
For our previous analysis, click here.
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Bitcoin Price: Trends and Highlights for August 20
- BTC/USD is trading inside a long-term descending triangle.
- It is trading inside a short-term ascending channel.
- There is resistance at $11,000.
- The price is trading above most moving averages.
Symmetrical or Descending?
In order to determine the current pattern, we will take a look at the daily chart.
- In the left side of the graph, we can see a descending triangle.
- In the right side, we can see a symmetrical triangle (the support line of the descending triangle is dashed).
This means that the Bitcoin price is either trading inside a bearish or neutral pattern.
A breakdown from the symmetrical triangle (neutral) would not invalidate the descending one (bearish).
Rather, it is possible that the price breaks down from the symmetrical triangle and drops to validate the horizontal support line at $9200.
Therefore, for the purpose of the analysis, we are going to consider that BTC is trading inside a descending triangle.
A look at the relatively shorter four-hour time-frame shows that BTC has been following an ascending channel since August 15.
Additionally, we can see a resistance area at $11,000.
The price reached the lower limits of this area on the morning of August 20, before decreasing slightly.
A look at the moving averages indicates that the BTC price is in a significant uptrend, trading above the 10-, 20-, 100-, and 200-period moving averages.
It seems as if the Bitcoin price has found support above the 20-period one.
Additionally, the 100- and 200-period MAs are very close to making a bullish cross.
We believe that whether the cross happens or gets rejected will greatly assist in confirming if the price is in an uptrend.
Additionally, there is no bearish divergence, even in the shortest time-frames.
To the contrary, the RSI is following an ascending support line.
At the time of writing, it was right on this support line.
This makes it likely that an upward move will follow.
Therefore, I would expect the Bitcoin price to reach the resistance area again.
The price movement there will indicate where the price is going to next.
Bitcoin Price Prediction
The BTC price is trading inside an ascending channel.
According to our analysis, it is likely to reach the resistance area at $11,000.
A double top inside that area would offer shorting opportunities, especially if it is combined with bearish divergence. If that occurs, a decrease towards the support line is expected.
We do not expect the price to breakout/down from the channel today.
Rather, it should continue trading within its confines.
Do you think the BTC price will reach the resistance 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.