Having jumped out of a narrowing price range earlier this week, Bitcoin is on track to test $9,000. Since bitcoin suffered losses in July and January, obviously the crypto may end August on a negative note.
- In the next few months, it’s likely that BTC may face a bigger price fall possibly to the 200-day moving average near $7,400, if prices print a UTC close below $9,049 on Saturday, confirming a bearish reversal on the monthly chart.
Its possible to see a minor price bounce, possibly to the Aug. 22 low of $9,755, before a drop to $9,000, as bullish conditions are being reported by an hourly chart indicator.
If prices find acceptance above $10,280 like Wednesday’s high, although it looks unlikely then the short-term bearish case would be invalidated.
For bullish revival, A weekly close (Sunday, UTC) above $12,000
With a fairly price drop in August, Bitcoin (BTC) looks set to register its third monthly loss of the year.
Currently trading at $9,600, from the leading crypto by market value representing a 4.8 percent drop on the opening price of $10,096 observed on Aug. 1, according to reports from Bitstamp data.
If prices situation doesn’t change as it remains below $10,096 till Saturday’s UTC close, definitely it would be the third monthly loss of 2019.
Looking at the chart below, BTC fell 7.59 percent and 6.27 percent in January and July, respectively.
• Obviously the Bitcoin’s five-month winning run which is the biggest since August 2017 ended last month as observed
• January’s 7.59 percent decline was the longest losing streak on record, with the sixth consecutive monthly drop.
Observing the look of things, the cryptocurrency is currently down on $586 from the monthly opening price of $10,096 and worth noting that the monthly close that is Saturday UTC is though 35 hours away anyway.
BTC has moved violently by $1,000 or more in a matter of just a few minutes judging from the past. Take for instance, during the U.S. trading hours on July 18, prices rose from $9,300 to $10,400 in 30 minutes. Anything can happen though.
Therefore it cannot be ruled out the possibility of BTC finding acceptance above $10,096 before Saturday’s UTC close. Then, that would amount to a monthly gain.
From all indications, technical charts, however, shows that the sellers are in control and prices are more likely to end the month with losses.
3-day chart and hourly charts
There is a bullish-to-bearish trend change indicated by the contracting triangle breakdown above the left as seen in the 3- day chart.
Also dropped below 50 for the first time since mid-March is the 3-day chart relative strength index (RSI). A bearish market conditions are also indicated below-50 print
The Chaikin money which incorporates both prices and trading volumes, a sign of increasing selling pressure, has found acceptance below the zero line.
However, in the next 24 hours the cryptocurrency may drop to the psychological support of $9,000 as the path of least resistance appears to be on the downside.
Any violation there would expose the ascending 50-candle moving average (MA) support, currently lined up at $8,738.
As the RSI on the hourly chart (above right) has moved into the bullish territory above 50.00, a slide to $9,000, however, could be preceded by a minor price bounce to the former support-turned-resistance of $9,755 (Aug. 22 low),
Now the stacking order of the 50-hour MA, below the 100-hour MA, below the 200-hour MA is a classic bearish signal as the hourly RSI has also turned bullish.
May be these averages, currently located at $9,648, $9,932 and $10,048, will likely offer strong resistance.
With the monthly high and low of $13,200 and $9,049, respectively, falling within June’s trading range of $13,880 to $7,432, BTC had this bar pattern it created in July.
This setup represents a narrowing price range that is characterized by higher lows and lower highs , indicating a sign of an indecisive market or consolidation as the case may be.
The actual low range breakdown is widely considered a sign of bearish reversal, when this occures below the inside bar.
Therefore, the level to beat for sellers comes with July’s low of $9,049 and a monthly close that is below that level would then mean a long-term bullish-to-bearish trend change and then shift risk in favour of a drop to 200-day moving average (MA), at $7,468 currently.
The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose as this information is intended as a news item to inform our readers of various events and developments that affect, or that could in the future affect, the value of the cryptocurrency described above. More advisable to seek professional advice before investing.
READ MORE :
Credits: Omkar Godbole
JOIN OUR COMMUNITY