The bitcoin price has taken a tumble in the face of uncertainty, but is showing signs of recovery following the growth of new, upward momentum.
Bitcoin Price Technical Analysis
Prices couldn’t break the $2600 resistance due to uncertainty generated by the looming August 1 scalability showdown.
As a result, the bitcoin price plunged into the $1900s following the head and shoulders pattern—which prevailed even though two bullish figures overlapped it.
Now, in the $1900 range, the price may go as far as to test $1500 before a resolution to the scalability showdown produces a bullish recovery.
The big triangle that had developed in the charts as a third reference—overlapping all other figures with a bearish possibility—finally broke.
Consequently, the bitcoin price fell below $2000 and settled down in the $1900 range. From there, we could see prices as low as $1500, where the head and shoulders objective ends.
Indicators that once pointed towards the upside have since flipped down due to high volatility. If the bitcoin price continues to decline, it may only stop once it hits the bearish technical goal at $1500.
Last week’s sideways market failed to break upwards through the $2600 resistance. Because of that failure, the price tumbled downwards below $2000, with a technical objective of $1500.
In the short-term, a large triangle pattern has led prices to break the support at $2150, sending them down to $1900. For now, price levels seem stabilized at the $1900 level, with some momentum building to the upside. Eventually, the main head and shoulders objective should attract further support at $1900, further stabilizing the lower bound of the bitcoin price.
What do you think will happen to the bitcoin price? Share your predictions in the comments below.
Image via Haiku Deck. Price Charts courtesy of BitKan.
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