Last week, the price of bitcoin (BTC) declined dramatically, with rumors of a $6,000 drop and even a $3,000 drop among traders. According to Bitcoin technical analysis, this is not out of the question. At the moment, bitcoin seems to have stabilized and buyers are still hoping for a serious move to $8,500 in the coming days.
Technical Analysis of Bitcoin price
Since falling from $10,300, bitcoin has ranged in price from $8,000 to $8,400 and is backed by $7,850 to $8,000. Priced at $7,715, it made two attempts to fall and then stabilized above the 20-MA moving average line. The last two attempts to build strong bullish momentum have raised the price to around $8,520, with the downtrend continuing with the focus on the Bollinger Bands. It can be inferred that the bitcoin price is within the range of the MA Bands moving average at $8,520. On a more general note, the price chart remains below the 200 MA moving average at $8,736, and this point remains strong.
Looking at the Stochastic RSI Stoch, we saw an upside in the 4-hour and weekly timeframe, but similar to other analysts, the current short-term versus long-term MACD analysis offers a contradictory view of bitcoin’s overall price. Because in the daily time frame we see the price slowly curve upwards. It is generally thought that Bitcoin is trying to recover some of its gaps in the short term, but longer time indices indicate a downward trend.
There has been much talk about the importance of the 200 MA moving average, and traders may be focusing on the Average Daily Moving of 111 (DMA). This indicator and the median arm of the daily Bollinger Bond are almost aligned, creating a reverse trend at $9,500. Daily traders looking at the 1-hour chart find that BTC’s efforts to break the high level of Bollinger Bond lead to a repeat at $8,588. A third failed attempt to overcome $8,528 could be the final step to put the BTC below the 20-MA moving average, and its price could drop to $8,175 or even lower to $7,720.
The drop below the lower arm of the Bollinger Bond at $7,338 is likely to cause concern. While many of these valuations are unaware, a drop below $7,300 opens the door to a further drop of $5,700. Of course, buyers are always likely to stop bitcoin from falling before it goes down, but there is no guarantee.
In the short term, traders like to beat Bitcoin at $8,760 and jump above the recent high at $9,785. Ideally, high volume purchases would make bitcoin up to $8,736, then probably stop at a 20MA moving average. A short integration period will occur during this moving average and then Going up to $9,773 or even $10,556 thereafter will be the next upside. But maybe it’s a little ambitious.
In short, it looks like Bitcoin is now well above $7,800. If Bitcoin rises to $8,200 and $8,500 you can expect sellers to dominate and fall below $7,300 to $6,500 and even up to $5,700.