Published 41 mins ago
The Bitcoin price took a major hit from news and technical analysis. Thus, the US Fed pointed to another interest hike next month to fight the high inflation, which ignited a 7.3% fall on the intraday level. Moreover, the coin chart showed a bearish wedge pattern which triggered the last five days’ downfall, registering a cumulative 12% drop. How low this pattern will lead the BTC price.
Key points BTC Analysis:
- The Bitcoin price has been on a losing streak for the past five days
- The 20-and-50-day EMAs show bearish crossover
- The intraday trading volume in Bitcoin is $35.5 Billion, indicating a 38.8% loss
As per the technical analysis, the ongoing sell-off in the market accentuates that the history has repeated for Bitcoin (BTC) price. Furthermore, as coingape mentioned in their recent article, the coin chart showed the formation of a rising wedge pattern.
Since the November fall, this pattern has emerged twice and depreciated the BTC price by 30-40%. Thus, on august 17th, the price reverted from the local top of $24500 and breached the pattern’s support trendline.
The post-retest fall has plummeted the prices by 8% and currently trades at the $21515 mark.
Furthermore, the crypto market witnessed a significant sell-off today as the St. Louis Fed President James Bullard Hints at a 0.75% rate hike in September. Thus, the coin price continued to drop lower and gave a decisive breakdown from the $22580 support.
After the expected candle closes below the $22580 level, the BTC price could revert higher to retest this breached resistance. If the retest phase sustains below the flipped resistance, the sustained selling may drop the prices to $20770.
However, following the bearish continuation pattern, the BTC price could drop another 12% and reach the $19000 support.
EMAs: the coin chart regains a bearish alignment among the crucial EMAs as the falling price nosedive below the 20-and-50-day EMAs. Moreover, a negative crossover between these slopes may attract more sellers to the market.
Relative Strength Index: the daily-RSI slope displayed a sharp drop below the midline, indicating bearish sentiment has taken hold.
- Resistance level- $22580 and $26500
- Support level- $22070, and $19000
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.