Bitcoin to stay Bullish Despite its Fall?

Krystian Bielanski
Krystian is a crypto trader and investor with a background in IT based in Hong Kong. He specialises in technical and fundamental analysis working closely with chartist and algo programmers.
  • Bitcoin’s crazy August rally stalled temporarily as the month is near to its end.
  • The second and third largest cryptocurrency also followed bitcoin’s action and are resting their respective support levels and holding to avoid further fall.

Bitcoin’s crazy August rally stalled temporarily as the month is near to its end. Bitcoin price failed to sustain its position above $12,000, and the prices pushed back beneath the support level; However, the uptrend remains intact. The second and third largest cryptocurrency also followed bitcoin’s action and are resting their respective support levels and holding to avoid further fall.

The first half of August  saw a bullish sentiment in bitcoin, following bitcoin’s high correlation altcoin also turned bullish. However, some altcoins were already taking an independent trajectory.

The price of Bitcoin (BTC) has risen by nearly 30% in the last three months, BTC took flight from $ 8,733 to a high of $ 12,434. Bitcoin after breaking psychological barriers of $12,000 surged past the $12400 mark. However, the celebration was temporary as bitcoin nosedived to $11500 on the charts, losing nearly $1000 from recent gains. The effect of such a massive drop was visible as the sentiment around the crypto market turned bearish. However, the current consolidation still retains a bullish inclination. 

The price of bitcoin continues to form higher highs and higher lows – a requirement for any repeating pattern. The inversed head and shoulders pattern indicates the next move to the level of $15,000. 

The bitcoin futures trades registered notable shorts on leveraged funds as the funding rate acquired by Leveraged trades were negative. The investors in the future market are speculating against bitcoin’s bullish moment.

Bitcoin Price Analysis

Tradingview

On a 4-hour time frame chart, bitcoin has entered “oversold” territory as RSI hits 29.

Tradingview

Here a bounce is expected as the previous support showed it always bounced from these levels. 

Tradingview

BTC could continue from here towards 12k or go to lower support which is 10225 usd if it loses this level we will be heading towards the $9700 cme gap $9700.

 However, currently BTC is sitting on 200 EMA which should act as strong support.

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