Price of Bitcoin is consolidating, risk of another fall is still there

The fear continues to gain space, the financial markets do not find ground. Even the gold continues to find new support. In the case of the price of Bitcoin, the USD 4,000 have been a good support, but there is still the risk of another sharp drop. Here we present a technical analysis of the topic.

Technical analysis of the price of Bitcoin

After the imminent fall of the market, crypto, BTC managed to get support to curb the strength bearish. In summary, one can say that the price of Bitcoin is consolidated. The range in which it is located has drawn a very clean symmetrical triangle, a formation chartista that indicates continuation of the trend. In these moments, the likely support of another impulse down. However, the bulls are trying to take control momentarily. Symmetrical triangle observed in the 4 hours chart the price of Bitcoin. To try to identify the most likely scenario, let’s review the chart BTCUSD in different time frames.

Temporality weekly

From the weekly chart, the situation is not so pessimistic. Then of which very low prices were achieved, strong rejections of levels of the minimum are witnessed. Despite this, the structure remains bearish, the product of the continuous formation of peaks each time more low. If the price tries to go back, just would be the search for a new point structural descending. For this reason, we can ensure that it is bear market for a good amount of days. Technical analysis weekly chart BTCUSD The EMA and 8 SMA 18 support the sequence of maximum downstream. The recent episode of extreme volatility experienced by the market, crypto caused the crossing bassist of these two moving averages. The SMA 200 shows its strength and continues to be respected. The candles with long wicks were not able to quebrarla, doing that today remains bullish. Moving averages on the weekly chart of Bitcoin.

Temporality daily

The time frame with candles, daily remains bearish. A clear succession of peaks lower and lower can be observed. The immediate resistance is located at USD 5,700, which is and must be crossed if the others want to bring the price to a reversal higher. If that does not happen, the current consolidation will be needed to validate a new maximum lowest. Daily chart of the price of Bitcoin. Moving averages EMA and 8 SMA 18 support the bearish trend observed in this time frame. Currently, the EMA 8 is working as dynamic resistance. The SMA of 200 days is also bearish, and currently quite far away from the price. Moving averages on the daily chart of Bitcoin. The RSI supports the downward trend. During these days of consolidation, this indicator managed to recover after reaching the level of oversold, but still not able to pass to the territory bullish. What we are in conditions to affirm that the price of Bitcoin is consolidated? RSI on the daily chart the price of Bitcoin.

Temporality intraday

In the 4 hours chart, the conditions have begun to be bullish. The bulls try to make a break of the top of the symmetrical triangle. The RSI has entered the territory of shoppers, and located above the level 50. RSI on the 4 hours chart. The EMA and 8 SMA of 18 have crossed to the upside and have worked as mobile media. The SMA 200 periods is still bearish and could operate as a resistance cell if the price manages to go back to the USD 7.750. Currently, a small structure upward can be observed. The bulls are trying to validate a break of the resistance of the formation. Technical analysis of the price of Bitcoin 4 hours chart. As I said, the symmetrical triangle is a formation of continuation of trend. There is still a small resistance in the $ 6.000, a place where they could exert enough pressure to cause a break false bullish figure. If the bears manage to resume the trend, the formation predicts a drop to USD 2.900. Prognosis of the figure chartista symmetrical triangle. For the moment, in the time frame of 4 hours, the conditions are in place to open a retracement up to at least USD 6,500, in the event that this is not a strong resistance, the second objective are USD 7.750. Just while you wrote this publication, the signal of break of bull might try to be effective. If that does not happen, the larger trend will continue dragging the price towards new media. Do you think the price of Bitcoin is consolidating in the short term? All our publications are of an informative nature and in no case should be followed as the advice of investment.

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About the author

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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