Bitcoin Price Action Hints A Revisit To $18500; Buy Again?

Published 14 seconds ago

A bear cycle within the descending triangle pattern has breached in between support of $19600. This breakdown should accelerate the ongoing selling pressure as the market sentiment is already in fear, with interest hikes in November. Thus, The potential downfall may plunge the Bitcoin price back to $18500.

advertisement

Key points:

  • The falling prices breached the 20-day EMA support
  • A lower price rejection below the $19400 stall the buyers wrestling for trend control
  • The intraday trading volume in Bitcoin is $16.8 Billion, indicating a 4.5% loss

Bitcoin Price Chart

Source-Tradingview

The Bitcoin price chart shows the formation of a descending triangle pattern. The coin price has retested the pattern’s barriers, i.e., descending trendline and $18500 neckline support, several times indicating the traders respect those levels. 

Furthermore, the lower high formation within this pattern reflects the gradual decrease in bearish momentum. Thus, if the daily candle closes below the $18300 mark, the accelerated selling pressure will prolong the prevailing downfall and may plunge prices to $16500.

Trending Stories

As of now, the Bitcoin price recently turned down from the combined resistance of the downsloping trendline and 20500. The resulting downfall fueled by the release of US unemployment data pulled the coin price below the local support of $19500.

However, the coin price tries to retest this breached resistance as a viable resistance. If the selling pressure persists, a downfall of 5% is possible to hit the $18500 bottom support. 

On a contrary note, if the buyers break above the resistance trendline, the bearish thesis will get invalidated. 

Technical Indicator

Relative Strength Index: despite a sideways price action, the daily-RSI slope shows a sustained rally indicating the buying activity rising at $18500. The evident bullish divergence in this indicator suggests a significant possibility for a trendline breakout.

advertisement

Bollinger band indicator: The coin price trading above this midline support indicates the market sentiment is bullish. Moreover, the indicator’s midline support is trying to stall the ongoing downfall.

Bitcoin Price Intraday Levels

  • Spot rate: $19489
  • Trend: Sideways
  • Volatility: Medium
  • Resistance level- $20600 and $21800
  • Support level- $19600 and $18500-18300

Share this article on:

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

Close Story