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A Bitcoin Breakdown May Signify a Bearish Drop (BTC/USD Price Prediction: 04/15/19)

3 mins
Updated by Alexander Fred
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At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our April 11 analysis of Bitcoin (BTC), we predicted that the price would decrease. Our prediction was validated the next day when price broke down from the trading pattern we defined. To learn more, read our latest analysis below:

On Apr 10, the price of BTC reached a high of $5466. A sharp decrease ensued. Bitcoin reached a low of $4912 two days later. BTC/USD has since been on an uptrend with highs near $5200 reached at the time of writing on Apr 15.
BTC Market Outlook
Bitcoin (BTC) Prices: Apr 10 – Apr 15
Are prices going to continue along this uptrend or will Bitcoin drop below $5000 again? Let’s find out:

Bitcoin (BTC): Trends and Highlights For April 15

  • The price of BTC reached a high on Apr 10.
  • BTC/USD has been trading inside an ascending channel since Apr 11.
  • Bitcoin is trading very close to the resistance line of the channel.
  • Bearish divergence is developing in the RSI.
  • There is resistance near $5190 and $4930.

A Look at the Current Trading Pattern

The price of BTC/USD is analyzed at thirty-minute intervals from Apr 10 to Apr 15 to determine Bitcoin’s current trading pattern.
On Apr 11, the price made an hourly high of $5088.11. A gradual decrease was followed by a gradual increase. The price has made several higher highs during this period. Tracing these highs gives us an ascending resistance line: Bitcoin Resistance On Apr 12, Bitcoin made a low of $4912. Several market cycles have been completed. The price has made successively higher lows. Tracing these lows gives us an ascending support line. The resistance and support lines combine to create an ascending channel: Bitcoin Ascending channel It is likely that the price will increase at the rate predicted by the channel until a decisive move occurs. In order to predict the direction of the movement, a look at technical indicators is required. To read about our full April price predictions, click on the green button below:

APRIL BITCOIN PREDICTIONS!

Technical Indicators

To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with the relative strength index.
The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
Combining  RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. They are shown alongside Bitcoin’s current trading pattern below:
Bitcoin RSI
At the time of writing on Apr 15, Bitcoin reached a high of $5185.26 before a slight drop. Soon thereafter, Bitcoin hit a higher high of $5192.01. Similarly, the RSI  made the first high on Apr 15. However, it has proceeded to generate lower values. This is known as bearish divergence and often precedes price decreases. It should be noted that the divergence is occurring in short-term timeframes and is not very significant in value. However, it gains validity due to the fact that it is coming after a breakdown from a long-term channel that was preceded by long-term bearish divergence. Using these indicators, it is likely that the price will eventually drop to the support line of the channel.

Reversal Areas

We now incorporate support and resistance areas to determine the actual possible future price levels.
Support and resistance areas are created when the price revisits the same level several times. They can be used to find likely areas of reversal if a breakdown occurs.
These areas are traced in the graph below:
BTC Reversal
The closest support area is found near $4930. This area is below the channel and could only be reached in the event of a breakdown. The closest resistance area is found near $5190. It coincides with the resistance line of the channel. If the price moves above this area, it would break out from the channel. We believe this to be unlikely.

Conclusion and Summary

Based on this analysis, the price of BTC is likely to drop to the support line of the channel. A breakdown is possible and a breakout is unlikely. Interested in 2019, 2020, and 5 year Bitcoin price predictions? Click on the green button below

LONG-TERM PRICE PREDICTIONS!

Do you think BTC will keep increasing or begin to decrease?  Let us know your thoughts 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.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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