So, everyone waited for the next BTC move. We are glad to say that the trend is on the verge of confirmation. Therefore, CoinSyncom brings the latest Bitcoin price analysis on a 1-hour BTC/USD chart.
Let’s dive straight into charts.
Bitcoin price analysis – the triangle breakdown
Just like we discussed in our previous article, Bitcoin slipped through the higher lows level of the descending triangle. The chart below confirms the down-trend as Bitcoin obviously struggles to maintain the $9,000 price. However, $9,000 isn’t the key level in this case.
Instead, traders should look at $8,900 as the previous rally point. Just like the chart below shows, if Bitcoin breaks the $8,900 support, the next one stands at $8,500. And it is an important one.
If Bitcoin breaks both of those supports, we may have a real landslide on our hands. Nevertheless, there is another ascending line that may yet prove to be more important than it seems.
Fibonacci announcing future movements
As always, there is no good technical analysis without Fibonacci. Therefore, we always check what this Italian mathematician had prepared for us almost 900 years ago.
Again, the two supports we mentioned coalign with Fibonacci’s 50% and 61.8% retracement levels. That is significant since the latter is always considered to be a good point to consider entering the trade.
Still, our companionship with this medieval mathematical genius doesn’t stop there. As it is visible in the chart below, Fibonacci time zones reveal another interesting fact.
At zone 2, Bitcoin established a $8,900 support. Now, at zone 21, it is testing the same support. However, this time after leaving the descending triangle. That means that we are at a crucial point in time for BTC. Even the medieval mathematical, obviously, knew that.
Bitcoin price analysis – the rising lows
One of the charts above has a line with “remember this one” label so you must be wondering about what’s so important about it. Let us ease your suffering and show you what a lot of traders might have missed.
By zooming out as we always do, we realized that, historically, Bitcoin has perfectly aligned rising lows. The 4-hours BTC/USD chart above clearly shows that this rising level may be the one to hold BTC if it starts to plummet.
There are tools that work in your favor by analyzing the latest market sentiment for you. One such is Coinalyze. According to the readings presented there, Bitcoin is currently in the overselling session.
Moreover, the overall trend and market sentiment doesn’t look favorable for Bitcoin. The screenshot below clearly shows that BTC has the most problems in 15-minutes and 1-hour periods. The worst looks the SMA (100) with a negative 3.04% reading.
Bitcoin engulfing patterns analysis
Usually, when the occurrence like this happens, it gets confirmed by specific candle formations. Therefore, our daily and 4-hours BTC/USD charts show similar engulfing patterns. Engulfing patterns can be positive and negative signs. This time, they reveal a negative trend possibility for BTC.
It is clearly visible on the chart above how the red candle engulfs the entirety of the previous green one, thus announcing the negative trend. The next chart shows the same pattern on a different time scale.
The 4-hour chart reveals something similar but more distinguished. As the red candle engulfs a green one, traders know that there is a negative market sentiment at hand and start trading accordingly. That is the moment when the second red candle gets generated by the rising mistrust.
Bitcoin looks like it is in deep trouble at the moment. Combining the fact that it has broken down from the descending triangle with the bearish candle patterns, we get a dark prediction. Of course, only for those who aren’t used to short trade with leverage.
For those of our readers who are still in fiat, continue to be patient. Bitcoin is currently weak. The price is declining and supports are fragile. Always wait for confirmation of the trend reversal before entering the trade.
You should look elsewhere for investment advice since this isn’t it. Even if it looks like it, it’s not. Cryptocurrencies are known to be extremely volatile and risky speculations. Always do your own research. Consider to consult an investment professional prior to investing your money.