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- The Bitcoin price freshly set a new yearly high of $12,359 on August 17, 2020, but has since drawn back under $12,000.
- OMG Network is leading in today’s market as the biggest gainer, having surged by 68.13% on the charts.
- The daily chart for BTC reflected the formation of a rising wedge pattern.
The Bitcoin price freshly set a new yearly high of $12,359 on August 17, 2020, but has since drawn back under $12,000. Bitcoin’s failed attempt to sustain above $12,000 led to correction as the price fell to $11,500 on the charts. At the time of writing, bitcoin performed well to recover from the devaluation, with bitcoin trading for $11,771, with a market cap of $217 billion. The 24-hour trading volume for the world’s leading cryptocurrency was recorded at $21 Billion.
As the cryptocurrency market proceeds further took a dip, on Friday, another $10 billion was flushed out. However, bitcoin’s movement didn’t have a similar impact on the market as many altcoins followed Bitcoin’s direction, while others performed inversely on the charts.
Terra (LUNA) becomes the biggest loser in the market, having declined by 10.02% on the charts since yesterday. In contrast, OMG Network is leading in today’s market as the biggest gainer, having surged by 68.13% on the charts.
Bitcoin Price Analysis
Troubled times for the largest cryptocurrency, Bitcoin, is not over as the coin appeared to be struggling to break and sustain above the $12k mark.
The daily chart for BTC reflected the formation of a rising wedge pattern. This is indicative of a potential bearish breakout once the wedge completes which could drive the coin to revisit its previously breached support points. There are still plenty of sellers showing interest around the 9200 area. For the coming weeks, it’s important for bitcoin to test its previous resistance and turn into support.
Bitcoin‘s weekly price shows a bearish spinning top candle with considerable movement in BTC value to push the price to $9,000. However Bitcoin has strong support around the $10,200 mark, but it is expected that retail investors might trigger the panic sell which could drag the price to lower levels. There is also CME gap at $9700 which should be filled.
On the weekly charts, spinning top appeared to be forming which indicates that bears might pull the price down, however, It’s not yet confirmed on the charts. Additionally, the relative strength Index [RSI] is at 69, suggesting that BTC was close to entering the overbought zone, the price of BTC could still potentially move above 12,000 to trap some bulls and trigger the sell off.
There are two scenarios in favour of bearish ( red line) down to 9270. The bulls will move up all the way and breakout from the rising wedge to trap buyers close to resistance and then start sell off or even just break down in the rising pattern. While on the contrary, if the bulls are in control they could push the price up from this bearish pattern however, it might observe before weekly closing above $12400 else, the bear will take control. However, It’s a rare scenario with this pattern but It happened before.
The coin’s technical indicators highlighted that according to Bollinger Bands and volume, BTC has succumbed to bearish sentiment in the market. The bearish market will witness sellers setting lower orders due to wider bands which tends to help traders set some levels of resistance and support. If the 10200-9300 support doesn’t hold above moving average btc will be heading straight to 6720 and this might create panic sell off.
