BTC May Not Drop Below the Accumulation Area of $9,000

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Sellers on the Bitcoin (BTC) continued to maintain their bearish sentiment past the popular support zone, although the uptrend momentum remains intact as far as it propels past the price level at $10,956.

The cryptocurrency of the first choice, Bitcoin, crashed with a market price value of about $600 during the Asian trading session on Wednesday while on the intraday chart it displays an uptrend pattern established already.

As examined recently, on the retest of the low level at $9,467 on Aug 15, which came into effect due to the bearish reversal pattern. Despite this scenario, the low level discussed above was not achieved while the momentum towards the base below the 100-day moving average (MA) fizzled out and presently the price stands on the level at $9,900.

Earlier this month, it is important to take note of the long term MA functioning as a hard base to crack. While the digital asset saw bids under the 100-day MA as of Aug 15 and exited (UTC) on the same day with an increase past the price level at $10,300. On the next day trading session, the value reached was backed up once more while the occurring price reversals closed by reaching the top, past the level at $10,950 just like on the 20th of Aug.

Because the 100-day MA retains its bearish position. For the subsequent periods, the analytical trend displays it may go towards price retracement. Presently, on Bitstamp the BTC is seen alternating its price on the level at $9,970, constituting for the day, almost a 1.7 percent loss.

 

Major Chart Analysis

Although this is a quick summary of the overall analysis consisting of the daily, 4-hours and hourly charts. The bullish bias may meet resistance while progressing to the target area on the price level at $10,956, as displayed on the daily time frame with the major indicators such as the moving average indicating a bearish activity. For example, the RSI is holding below 50 while the moving average convergence divergence (MACD) is indicating price on the low in a negative zone.

Besides, the moving averages 5 and 10 weeks, shows a bearish crossing as posited earlier in this discussion. By the reason of last week’s retracement off the 100-day MA, completing the bearish pattern with lower high has shown a bullish bias with low momentum.

On the 4-hour time frame, the scenario for a crash of the value towards the price level at $9,467 to Aug 15 low, accelerated by the bullish pattern displayed, remains intact as long as prices stay under the price level at $10,807.

However, on the premise that the value exits past the price level at $10,000 for the day and reached out past the price level at $10,927 (Aug 16 close) for the coming day or next two days, then a double – bottom bullish breakout may be confirmed. Clearing the way for the value to reach the price level at $11,850.

The first choice cryptocurrency, BTC, having had almost 4 attempts at surpassing (Sunday UTC) the price level at $12,000 over the past 2 months. However, a close on the weekly time frame past the price level stated above is then required to establish the return of a total bullish momentum on the digital asset.

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About AzeezMustaph

Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.