Bitcoin Price Analysis – Will BTCUSD Plunge Towards $8000?

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Bitcoin price has extended its decline breaking the key $10,800 support level. Will the downward trend continue towards $8000? Gain insight into the following technical analysis.

Bitcoin Price Technical Analysis

In retrospect, Bitcoin (BTC) price was being resisted from the $13,000 resistance level on July 10, this resulted in a downward correction. This, however, was not the first time BTC bulls were resisted.

The bears have broken the 12 and the 26-day Exponential Moving Averages (EMAs) as Bitcoin price dropped to the bearish trend zone. The price of BTC is NOW below the EMAS which is an indication that the Bitcoin price may continue to decline. Nevertheless, a trend line has been drawn to determine long the bearish trend will continue. A bearish trend continues if the trend line remains unbroken.

A bearish trend is said to have ended if the price breaks the trend line and another candlestick closes on the opposite of it. On the downside, if the downward trend persists, the price of Bitcoin may drop to the low of either $8,000 or $9,000. In the meantime, the Moving Averages Convergence Divergence (MACD) line and the signal line are above the zero line which suggests a buy signal.

BTCUSD Price Short-term Analysis

Looking at the 1-hour chart, BTCUSD price was in a downward trend. The 12 and 26-day EMAs were trending southward. BTCUSD price was below the EMAs as the price was in a downward fall. In the meantime, the MACD line and the signal line are below the zero line, indicating is a sell signal.

  • Resistance Levels: $10,500, $11, 000 ¸ $11,400
  • Support levels: $9,500, $9,000, $8, 500

Disclaimer

Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.

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