Skip to main content

BITCOIN STRUGGLES TO MAINTAIN $10,000: THE LAST TIME BITCOIN SEES 5-DIGIT PRICE IN SEPTEMBER 2019? BTC PRICE ANALYSIS



As you probably know, technical analysis is not always right, but it’s correct most of the time. Three days ago while Bitcoin was trading around $10,600, our last analysis title suggested another re-test of the $10,000 level, when everyone was bullish, we saw this leg down coming-up.

As you could notice, after getting rejected one more time by the crucial long-term descending yellow trend-line, started forming from the 2019 high at $13,880, Bitcoin plunged passed $10,000, marking the $9,880 support as its current daily low (as of writing this). This support is clearly seen on the following 4-hour ascending trend-line (marked yellow).

Looking at the bigger picture, the mentioned pattern of a substantial bearish triangle formation is still threatening the BTC chart. Of course, this can be invalidated at any moment; however, Bitcoin would need to break to the bullish side for it to take place and invalidate.

Simply put, the bigger picture from below is the crucial support line around $9,400, which is the last barrier before the triangle breaks to the downside. From the top, the triangles’ trend-line sits around the resistance level of $10,300 – $10,400. Hence, there is also a possibility of another leg up to the area mentioned above, before another final plunge.

Total Market Cap: $259 billion
Bitcoin Market Cap: $180 billion
BTC Dominance Index: 69.6%

*Data by CoinGecko

Key Levels to Watch



– Support/Resistance:
Bitcoin is now testing the critical $10,000 level as support. Nearby is the $9,880 support along with the 4-hour’s chart ascending trend-line. Further below lies $9600 (weak support level), before the crucial $9,400 level (the red ascending trend-line, the bottom line of the triangle). If broken down, Bitcoin is likely to produce a quick move down to $8,800 – $9,000 at first.

From the bullish side, the nearest level of resistance is the 100-days moving average line (marked white on the daily chart), around $10,250. Further above is the triangle’s descending line along with the 50-days moving average line (marked purple) at around $10,300 – $10,400. Above is the $10,500 – $10,600 zone.

– Daily chart’s RSI: After yesterday’s decline, the RSI is also standing on a decision point – the 44 levels. Overall, the RSI indicator tells the same bearish story of the Bitcoin’s price. Besides, since the stochastic RSI did make the mentioned cross-over at the overbought territory, Bitcoin lost almost $1,000 from its value.

– Trading Volume: Surprisingly, not a huge amount of volume followed the last move. Adding to the above, the daily volume is decreasing over time; this might tell on a coming-up huge price move.

BTC/USD BitStamp 4-Hour Chart



BTC/USD BitStamp 1-Day Chart



Comments

Popular posts from this blog

Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event. In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards. Is The Bitcoin Hash Rate Correlated With The Price? In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin, and there are many factors – external and internal – affecting the price. However, there is a relation between the two. While the price goes up, it’s more profitable to mine, which likely to cause more miners to turn on their mining equ...

South Korea Won’t Tax Cryptocurrency Profits, For Now

Good news for cryptocurrency traders in South Korea as profit generated from crypto trading will not be subjected to tax, according to a recent announcement from the country’s Ministry of Finance and Strategy. The Ministry clarified that the current tax law does not consider crypto trading gains as taxable income; thus, Korean crypto traders are not required to pay taxes on the profits they earn from crypto trading for the time being.  However, crypto traders in the country may not be exempted from taxation for a long time. An official of the Ministry said that the Ministry is aware of the loophole in the current tax law, and they are currently reviewing the regulations in major foreign countries so that they can amend theirs in an effective way. “The income tax law is only taxable on income listed as taxable. We are preparing a taxation plan for virtual assets by comprehensively reviewing the taxation of major countries, consistency with accounting standards, and trend...

IN THE NEW DECADE, CRYPTO WILL BECOME ESSENTIAL LIKE EMAIL: SAYS TYLER WINKLEVOSS

It’s the start of a new decade, and industry famous twin Tyler Winklevoss, the co-founder, and CEO of cryptocurrency exchange and custodian company Gemini Trust, has shared his views on what the next ten years hold for crypto. According to Winklevoss, crypto is already becoming more than a niche technology and a form of money, and it will play an essential role in our daily life in the foreseeable future. “Today, crypto is still a niche technology and a form of money. It is not crucial to your everyday life the way email and other web applications are, but our thesis is that this will change — it’s already changing if you look close enough,” Winklevoss wrote. Winklevoss added that the decentralized nature of cryptocurrencies, which empowers individuals, will be the driving force within the new decade. Crypto will not only redesign the internet but will also redesign the financial and monetary systems to protect the rights and dignity of users, he said. The Winklevos...