Cryptocurrency Price Analysis: BITCOIN

By Harshit

20th Aug 2020

Over the past week, Bitcoin crossed it’s $12,000 major resistance with the asset trading at $12,480 high couple days ago before experiencing a reversal. Experts believe that the largest asset of the crypto market needs to settle down a bit before continuing the ongoing bullish run, as the asset snapped it’s yearly $12,000 resistance, which will be next followed by previous all time $13,800 high to an all time high.

SHORT TERM PREDICTION: BITCOIN

(Source : Source Link)

Examining from the Technical levels, the Relative Strength Index (RSI) a momentum oscillator (Check: Source Link ) is currently holding up at 59% after hitting a 58% low of the month the previous day. It can be said that the overbought market condition is now at a settled state as expected, when the RSI topped a massive 85% at the beginning of this month closing the market at a bullish $11,810 experiencing a 4.04% hike from the day before.

This is usually followed by a pullback, which to our surprise was seen the very next day as the indicator dropped 20 points closing the market at a bearish $11,068.

It is to be noted that, on the very same day the asset was trading at a $12,134 high breaking the major $12,000 resistance level for the year. It can be said , the immense selling pressure from short term profit motive bears benefiting from the sudden high of the price can be held accountable for the prevailing market condition on that day.

By the time of writing, the asset is currently trading at a bullish $11,875 with the indicator moving upwards with 58% acting as support to 70% resistance. Thus, the indicator suggest that the bulls might have an upper hand till the momentum reaches 70% resistance.

(Source : Source Link)

Moving Forward, The Moving Average Convergence Divergence (MACD) another momentum trend generating oscillator ( check: Source Link) shows a -59.34 with the MACD falling below the signal line.

The signal line can be seen crossing above the MACD last week, while the increasing distance between the two is also visible since the beginning of this week. These coupled together suggests that the bulls might have a slight loose grip over the current market scenario and the situation mat remain intact for the coming days.

On the contrary, there still exist a visible divergence gap between price and the EMA(check: Source Link

Suggesting the uptrend may continue for a shorter time period.

Furthermore, it is clearly visible that the shorter moving average (EMA 26) is still rising above the longer (EMA 50) which further proves the above theory that the bulls might still have an upper hand and there shall exist an incoming bullish trend for a shorter period of time.

However, it is to be noted that the bulls are struggling to keep up the uptrend since the beginning of the week and the price may touch or even fall below EMA-26 in the coming days as the gap seems to be closing between the two.

(Source : Source Link)

Incorporating the above, it can be said that if the bulls manage to keep the asset above it’s $11,750 initial support for the coming days an uptrend likely to set the asset above $12,075 resistance seems possible. On the other hand, price falling below $11,750 support might see an incoming short bearish trend till the next $11,121 support.

Key support level: $11,750, $11,121, $10,530

Key Resistance level: $12,552 ,$ 12,075

FOR MORE SHORT TERM REFERENCES:

Source Link Fxempire

FXStreet Source link

Harshit

Currently Studying Bachelor of Science.(Hons) degree in statistics and seeking real-world,hands on experience to further develop acquired skills. Passionate to pursue a career in analysis with a strong interest in the field of financial market.

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