Sep 5, 2020 09:59 UTC
Sep 5, 2020 at 09:59 UTC
Cryptocurrency Weekly Price analysis: BITCOIN
Bitcoin is struggling to hold above $12,000 resistance as the asset crossed the $12,000 mark only once the previous week before experiencing a major drop yesterday. A recovery pull above it’s $11,400 support over the mid-week stated that the bulls have not given up yet. The recent plummet faced by the largest crypto asset has shifted it’s support down to $11,200 again. Experts believe, that a drop below $11,000 will eventually lead to next $10,500 for a fresh start of this month. By the time of writing, Bitcoin is trading at $11,304 experiencing further drop which may continue for the day.
SHORT TERM PREDICTION: BTC/USD
Examining from the technical levels, the Relative Strength Index (RSI) a momentum oscillator estimating the extent of latest price changes (Check: Investopedia ) presently holds up at 46% signalling the asset might trade at an oversold market condition if the selling pressure keeps shooting up.The measure was seen hitting below it’s 50% support when the market hit a $11,160 weekly low yesterday.
Similarly , The Bollinger Band ( check: Investopedia)
Another indicator measuring the market condition, suggests that the asset might proceed downwards for the coming days as the asset was noted approaching the lower band again from the previous week.
However, it is to be noted that last week saw the asset moving above the lower band when the market closed at $11,535 and was trading above it’s $11,500 monthly support (not until yesterday) suggesting us a buying pressure was present but not enough to challenge the pressure put up by bears.
Thus, both combined advises a bearish trend for the coming days.
Moving Forward, Moving Average Convergence Divergence (MACD) ( check: Fidelity) another momentum trend generating oscillator indicates that the asset might be slipping off from the bulls again after re-gaining a bit of momentum over the past week as the measure stands at -70.94.
It is to be noted that, over the past week the indicator recovered from a -114 to -40.78 pointer when Bitcoin crossed the $12,000 resistance on Tuesday. The MACD can be seen willing to move above the signal line before experiencing a reversal till yesterday, when the price dropped -4.43% closing at $11,395.
Furthermore, the divergence between the price and Shorter EMA (EMA 26) (check: source link)
has dwindled further over the past week and the asset can be seen falling below the shorter EMA.
EMA-26 can be seen acting as a support and price can be seen rising above when market rose 2.31% on Tuesday, before the reversal.
Moreover, the $11,160 low yesterday saw the price hitting EMA-50 and by the end of today it is expected to trade below the same.
These signs further support trend in the favour of the bears and the asset might proceed in the same direction.
On the contrary, the shorter EMA-26 can still be seen rising above the longer EMA-50 advising the bullish trend might remain intact for the coming days.
However, it is visible that the gap between the two seems to be shrinking.
Key Resistance level: $11,766, $12,029
Key Support level: $11,207, $11,083, $10,787
Incorporating the above, it can be said that Bitcoin would need to keep above $11,207 initial support over the mid-week in order to proceed in a range bound between $11,766 resistance and $11,207 support .On the other hand, price falling below $11,207 support over the same period might see an incoming short bearish trend till the next $10,787 support. Next is usual $10,500 monthly support.