- Bitcoin is likely send the entire market into a repeat of November 2018 downtrend.
- Bitcoin price is still fighting a rising wedge and it’s not doing a good job holding above key support areas.
Bitcoin is lethargic around $10,000 in the wake of the drop from $11,000. The largest cryptocurrency carries most of the weight of the market. In fact, a new research publish by Forbes claims BTC dominance is at a colossal 90%. Therefore, supported by the momentum of the fall from the weekly high at $10,953, Bitcoin is likely send the entire market into a repeat of November 2018.
Meanwhile, attempts to sustain recover above $10,000 continue to frustrate the bulls as Bitcoin price keeps sliding into the $9,900 range. For now, there is a visible correction as Bitcoin exchanges hands at $10,036. It is vital that the retracement continues above the critical $10,200. The move will definitely rejuvenate the buyers who have since disappeared into hibernation.
BTC/USD 4-Hour Chart
The 4-hour chart shows Bitcoin still clinging on to the bearish momentum. Despite this, observed is a shallow recovery from the intraday low at $9,950. The Moving Average Convergence Divergence (MACD) has a negative divergence. Besides, the indicator has a negative gradient with the over.
On the contrary, the Relative Strength Index shows that the prevailing bullish momentum is backed by some solidly growing strength. For instance, from levels close to 30, the RSI is gradually slopping upwards above 40. If the correction continues above the average, Bitcoin is likely to break above $10,100 and allow the bulls to focus on $10,200.
In spite all the technicals, a popular Bitcoin trader and analyst, Jacob Canfield outlines that Bitcoin will still gravitate lower. According to him, Bitcoin price is still fighting a rising wedge and it’s not doing a good job holding above key support areas. He predicts a possible buy zone to be between $8,900 and $9,100.
Pretty classic rising wedge that hit resistance.
First support zone didn’t hold up price at all.
Ideal buy zone $8900-$9100 if we can get there. pic.twitter.com/1UQddqryaS
— Jacob Canfield (@JacobCanfield) August 21, 2019
Bitcoin Key Technical Levels
Spot rate: $10,034
Key support $