Bitcoin’s price witnessed a major drop of 14% after breaching supports in over 5 days. However, the major breach in support occurred on August 13, when the price breached $11,229. The price has since collapsed by 8% and is currently at $10,459, further indicating a bearish trend in upcoming days.
Shorter Time Frame
Bitcoin has had a great run-up since July (refer chart). The price in this timeframe rose by 30% in 8 days, following which the price consolidated into a symmetrical triangle. The breakout from this pattern caused the price to trickle down at every major support, leading to the current price. However, looking at this price action from a slightly higher time frame of 4 hours, it shows formation of 2 patterns.
Why the Drop?
Looking at the CME chart of Bitcoin, it can be easily inferred that the price was merely filling the gap formed on August 3 and 4, between $10,665 and $11,070.
Descending Channel & Symmetrical Triangle
The Descending Channel has held for over 45 days and the price is on a downtrend and almost at center of the regression channel. Chances of price proceeding lower than $9,700 are less than likely. However, the price might easily hit $9,700 and bounce back. With this line of reasoning, likelihood of the descending channel holding up is bleak.
Adjusting the support lines, the pattern evolves into a pennant/symmetrical triangle.
This pattern would make a lot more sense as the current price action would respect the support lines as seen in the above chart. The price will continue to descend and breach support at $10,390 and reach $10,000. This would be a point of inflection for Bitcoin, a point where breakout will occur.
Direction of Breakout
Breakout direction is in limbo and could go either way, so looking at other factors would also provide a clearer picture.
- Prior Trend: As mentioned before, price has constantly been on an uptrend; however, bullish momentum seems to have hit a ceiling and is currently consolidating. This would make it a bullish pennant, indicating breakout to the upside.
- MACD: MACD indicator shows an imminent bearish crossover.
- RSI: RSI indicator has breached an important support line which has held for more than six months.
Looking at these indicators, it is clear that there is a vivid bearish bias for Bitcoin in a short to medium timeframe.
Weekly Time Frame
The weekly time frame for Bitcoin shows bleak prospect as the newly formed weekly candle has been bleeding red, at press time. There are, however, four additional days for completion of this candle, which will further confirm this bias.
A Shot in the Dark
Chart of Bitcoin has analysts flummoxed as the pennant that could break out either way. Considering bullish momentum exhaustion, price of Bitcoin, in the weekly time frame, could proceed lower – as low as $8,500.
Yes, as low as $8,500.
Bitcoin Price Analysis: BTC is On Price Recovery Mode; Gains 4.55% Overnight
- Bitcoin gained 4.55% in the last 24 hours and breached the resistance at 10,800 USD.
- It may soon touch 12,000 USD and further, it is likely to get a price rally before the year ends.
Bitcoin has managed to reach its first resistance point at 10,800 USD with the help of a 4.55% hike. It is likely to rise more in the coming days and by the end of this year, the coin is likely to be near 15,000 USD. In the last three months, the journey of Bitcoin was full of shocks and volatility. The coin reached its peak towards the end of June and it has been trying to reach there since then. We will now analyze the current statistics of the coin before going into details of the price movement pattern.
Bitcoin Price Statistics-
Bitcoin’s highest hike of this year has been the 85.70% hike between 04th June and 26thJune. This hike pushed the coin near 14,000 USD. From there, Bitcoin has been showing huge volatility. It was followed by a fall of almost 30% in the value against USD which deducted 4039 USD from the coin over just 5 days. After a week of growth, Bitcoin again took a dip to 9208.95 USD by 17th July. From there it has been a satisfying journey for the coin and it has risen to 12,196 USD by 06th August with the help of a 32% increase in the value. The market cap on 20th July was 186,505,443,026 USD and the value of the coin was 10,991.43 USD. The current market cap and the value of each coin are respectively 4.30 % more and 1.10 % less than the figures for the last month.
Bitcoin Price Prediction-
Bitcoin is consistently raging against 11,000 USD and the next big target should be 12,000 USD with so many little halts. But the coin is likely to get a good growth by the mid of next month. With the help of a price rally, the target of 15,000 USD by 2019 seems reasonable. The details of the resistance and support levels are given below.
|1st Resistance||11117 USD|
|2nd Resistance||11317.95 USD|
|3rd Resistance||11719.85 USD|
|1st Support Level||10514.15 USD|
|2nd Support Level||10112.25 USD|
|3rd Support Level||9911.3 USD|
Winklevoss Twins Say They’re ‘In Talks’ About Joining Libra Association
Tyler and Cameron Winklevoss — Bitcoin (BTC) bulls and founders of the Gemini crypto exchange — say they are open to partnering with archrival Mark Zuckerberg on Libra.
CNN Business reported on Aug. 19 that the twins are not allowing their notorious and drawn-outsettlement with Zuckerberg stand in the way of a potential collaboration.
In talks to join the Libra Association
Whether or not a partnership will finally materialize, Cameron told CNN that Libra represents a step towards mass adoption of cryptocurrency, underscoring:
“I think there is a day in the future where we can’t live without crypto, or imagine a world before crypto.”
As CNN notes, the twins’ proactive promotion of crypto-regulatory matters could make the duo an attractive partner for Facebook, given the widespread alarm the latter’s Libra project has already sparked among governments and regulators globally.
The twins revealed they have been in talks about joining the Libra Association — the newly-created, independent governance consortium for Facebook’s planned token — which currently counts 28 founding members and should expand to 100 by the time of Libra’s launch.
Tyler and Cameron noted, however, that they still need to learn more about the details of the project before deciding whether or not to join the Association, as well as whether to list Libra on the Gemini exchange.
The Libra Association has reportedly declined to comment on any ongoing negotiations with partners.
All the internet titans will embrace crypto
According to Cameron, Facebook may be the first tech titan to attempt a native cryptocurrency launch — but it won’t be the last:
“I think that internet companies have to have a crypto strategy, and I think a lot of them are thinking about their own coin projects. They’re probably watching Libra and Facebook to see how that fares as they develop it.”
He forecast that Amazon, Apple, Netflix and Google will follow suit, isolating Amazon in particular as a solid contender:
“Amazon can probably get packages to literally any place in the world, even if the last mile is on a dirt bike or something […] very ironic, that the physical stuff we can move all around the world and we can’t get money to a lot of places around the world.”
Earlier today, Cointelegraph reported that the design for the Chinese central bank’s planned state-backed cryptocurrency is reported to have been influenced by Libra’s unveiling.
Bitcoin Price Fails to Break Through $11K — Altcoin Bull Run Fizzles 1809
Bitcoin (BTC) price slid from levels near $11,000 Aug. 20 as momentum which sparked bullish sentiment at the start of the week fizzled.
Market visualization. Source: Coin360
Bitcoin lingers below $11K resistance
Data from Coin360 showed BTC/USD abandoning its shot at passing $11,000, having risen from levels near $10,700 on Monday.
The pair was trading back at those levels at press time, having dropped $350 over the past few hours.
24-hour gains for Bitcoin thus remained tapered at 2%, while weekly performance still revolved around an overall loss of nearly 6%.
Bitcoin 7-day price chart. Source: Coin360
Anticipation had run high as $11,000 approached, analysts rating chances for a definitive upward trend to recommence.
“I wanted to see it over $10,800 and it did close, short term bullish,” regular trader Josh Ragersummarized in his most recent update on Monday.
He added that BTC/USD remains under its weekly opening level from two weeks previously, an area which will now act as resistance.
Meanwhile, another fellow market analyst and trader, Filb Filb, was more buoyant, telling followers of his dedicated Telegram channel about the possibility of a break to $11,400.
Altcoins return to flat performance
Altcoins meanwhile failed once again to capitalize on previous gains. A look at the top twenty cryptocurrencies by market cap shows most reversing progress made on Monday, when some outperformed Bitcoin itself.
Ether (ETH), the largest altcoin, then dropped 1.6% to slide back below $200. Litecoin (LTC) dropped more at 2.3%, while XRP shed almost 5%.
Ether 7-day price chart. Source: Coin360
Only Monero (XMR) and Bitcoin SV (BSV) showed signs of life, gaining 1.2% and 0.8% respectively.
The overall cryptocurrency market cap was $276 billion on Tuesday, down $3 billion from the day before, while Bitcoin’s share remained over 69%.