Published 11 hours ago
Bitcoin Price Analysis: Bitcoin price continues its sideways trend, resonating within two diverging trend lines of a bullhorn pattern. It has been over a month and no action from either buyers or sellers suggests that market sentiment remains undecided on the possible trend. However, with the recent drop, BTC price has returned to the combined support of $29,640 and the trendline support. Will buyers make a comeback or could sellers push the price trend down?
Also Read: Don’t Miss These Key Crypto Market Drivers This Week
Bitcoin price daily chart
- The formation of the Megaphone pattern is a sign of increased volatility and uncertain trends.
- The $26,940 level offers strong support for market buyers
- Bitcoin intraday trading volume is $17.9 billion, down 14.7%.
Source – Trading View
On July 20, bitcoin price showed a high wave candlestick pattern (long wick and tail candlestick) at the $29,640 support. For the past three days, bitcoin price has been moving within the range of the above candle, creating a narrow range.
However, coin buyers received steady support from the $29,640 level, suggesting a legitimate possibility of a bullish reversal. For a bullish reversal to return to the upper trendline of the Megaphone pattern, buyers would need a break above the July 20th high of $30,522.
The potential breakout would signal the resumption of a sideways trendline and propel BTC price 4.5-5% higher and hit the upper trendline.
Will BTC Price Extend Correction Period?
The Megaphone pattern predicts the possibility of a breakout on either side. Given the current market uncertainty, a break below the lower trendline with daily candle closes will signal an extended correction. This collapse will drop Bitcoin price by 5.8% to $28,000.
- Bollinger Band: The shrinking range of the Bollinger Band indicator reflects increased volatility in the market.
- Relative Strength Index: An apparent divergence in the daily RSI slope reflects the fading bullish momentum and increased potential for a long-term correction.
I have been working in journalism for 5 years. I follow the blockchain and cryptocurrency for the last 3 years. I’ve written on a variety of subjects including fashion, beauty, entertainment and finance. Contact me at brian(at)coingape.com
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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