Bitcoin Price Analysis: Price Reversal Possible, Trace Triangle Breakdown

Bitcoin price has shown multiple reversals by forming a bearish harami candle
  • Bitcoin price has broken its crucial support after receiving resistance along its previous top
  • Bitcoin price volumes are dominated by sellers but still low 

Bitcoin price  gave a triangle breakdown by making a higher high; the breakdown has low volumes but dominated by sellers, indicating profit booking in the coin. The price has breached the R-1 levels and will find its next pivot at $55,000 and $50,000. The market cap and 24-hour volumes are $1,067,351,627,819 and $55,885,671,929 respectively. 

Negative Divergence In RSI Of Bitcoin Price

Left Image: Price analysis shows that the Bitcoin price faced a loss of momentum after making a bearish harami candle; however, it received support from the old crucial support. The coin is facing resistance at 78.6% retracement, i.e., $57,666. The crucial supports of Fibonacci levels are $54,500, $52,300, and $50000. While resistance is expected at $62,000.

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Right Image: The price is headed back towards the 50-EMA, which has been retested for thrice from the past three dips. The 50-EMA and 200-EMA are likely to support the prices at $50,000 and $32,000.

The Bollinger bands are sideways, which shows constant volatility, which is likely to impact the coin’s momentum. The median supports the coin today at $54,800; if the median is breached, it may cause a triangle breakdown and bring in a price reversal. The upper band and lower band are at $62,800 and $46,700. 

RSI has made a negative divergence by making a lower top while making a higher top. Such formation leads to reversals often. The RSI is 58; a breach of 50 levels will make the coin tumble. 

MACD(8,21,5) has also made a negative divergence by making a lower top while the price made a higher high. Both momentum oscillators indicate possible reversals. 

Conclusion: 

Bitcoin price has shown multiple reversals by forming a bearish harami candle followed by negative divergence in momentum oscillators. Currently, the price is receiving support from the Bollinger band’s median; a breach may bring a strong reversal. 

Support: $54,500, $52,250 and $50,000

Resistance: $57,666 and $61,700

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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