Cryptocurrency Weekly Price Analysis: BITCOIN

By Harshit

27th Aug 2020

Bitcoin is undergoing a gradual fall over the past week after the asset traded at a $12,480 high crossing the yearly $12,000 resistance, earlier this month. Since then, the asset can be seen stepping above $11,500 struggling to reach $12,000 resistance again while hitting a weekly high of $11,892, $11,834 and $11,769. Experts believe, if the largest crypto asset failed to hold above $11,000 mark might see a high fall till the next $10,500 support to continue it’s bullish run again. By the time of writing , Bitcoin is trading at $11,384 a sign against the bulls.



Examining from the Technical levels, the Relative Strength Index (RSI) a momentum oscillator (Check: Investopedia ) currently hit the monthly low at 48% again after Tuesday, when the asset experienced a 3.65% decline from Monday. The measure is currently falling below it’s 50% support and the preceding charts suggest a continuous trading below this support typically means an indecisive trend, with the price moving more in the favour of bears.

Similarly , The Bollinger Band ( check: Investopedia)

Another indicator measuring the market condition, indicates an oversold market can be seen approaching as the asset met the lower band of the measure when the market was trading at an unfair low of $11,102. This is usually followed by the price trading in the same condition for the coming days.

Moreover, the contraction of the two bands which was evidently seen from the past two weeks is further narrowing down indicating a tight trading pattern.

Both the indicators, suggests that the asset might move in the direction preferred by the bears.

(Source: TradingView)

Moving Forward, The Moving Average Convergence Divergence (MACD) another momentum trend generating oscillator ( check: Fidelity) depicts a -125.84 the lowest point the indicator has hit this month with the MACD further drifting apart from the signal line. This suggest us that the bulls are losing their hold on the market scenario due to influx in the selling pressure.

Furthermore, the divergence between the price and Shorter EMA (EMA 26) (check: Fidelity

has dwindled visibly over the past week and the asset can be seen falling below the shorter EMA. The asset can be first seen reaching the EMA-26 when the market closed at a bearish $11,529 last

Friday suffering a 2.82% decline from the previous day. However, the notable trading of the asset below the shorter EMA was evident when it struck a $11,102 low closing at $11,324.

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. It can be said that, there exist a buying support for the asset, which although is falling short to catch up with the selling pressure.

However, it is to be noted that the asset can be seen reaching the EMA-50 which further supports the fact that the bulls are struggling to hold the price above the EMA-50 and an incoming downtrend seems likely.

(Source: TradingView)

Key Support level: $11,300, $11,050, $10,780

Key Resistance level: $12,045, $11,840

Incorporating the above, it can be said that if the bulls manage to keep the asset above it’s $11,300 initial support over the mid-week an uptrend likely to set the asset closer to it’s $12,045 resistance seems possible. On the other hand, price falling below $11,300 support over the same period might see an incoming short bearish trend till the next $11,050 support.

For More Short Term Reference:

Source : Bitcoinist
Source : Cryptopotato
Source : AMBCrypto


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.

    Related Posts