Bitcoin Price Analysis: BTC Second Pennant Pattern Consolidation Eyes $7,500

Image of Bitcoin withstanding the heat while USD burns out
Image of Bitcoin withstanding the heat while USD burns out

Bitcoin Price Analysis: BTC Second Pennant Pattern Consolidation Eyes $7,500

  • Bitcoin forms the second pennant pattern in two days suggesting further losses are inevitable.
  • Most cryptocurrency analysts including Forbes’ Naeem Aslam Bitcoin downtrend is far from over.

Bitcoin price is struggling to stay afloat at $10,000. However, the bounced from the support at $7,750 has remained pivotal at the same level ($8,000). The bears’ grip tightened following the flash drop on Tuesday. There was an immediate attempt to correct above $8,800 but bulls ran out of the energy to sustain the growth. The reversal under $8,500 culminated in losses below the critical $8,000.

Yesterday’s drop comes after Bitcoin price consolidation a pennant pattern gave way for the losses experienced. Meanwhile, a second short-term pennant pattern on the hourly chart hints another slide that may retest $7,750 and even correct lower to $7,500.

BTC/USD 1-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

From a technical perspective, the Bitcoin has a higher risk of making lower corrections in the short-term. First, the price is below the moving averages whereby the 100 MA one-hour is currently at $8,800 while the 50 MA is struggling to hold at $9,421. The gap between these two MAs clearly shows that the sellers have the upper hand.

Consequently, recovery is visible with the moving average convergence divergence (MACD) shows that the influence the bears on the price is gradually going away. However, developing negative divergence signals Bitcoin price retreat in tandem with the above-mentioned pennant pattern reaction.

Most analysts, myself included are not convinced that Bitcoin downside correction is over. The gravitating prices must seek a credible bottom which will give way for fresh demand and convince buyers that recovery is possible. Forbes contributor and analyst Naeem Aslam in his recent tweet said that Bitcoin is likely to succumb to its biggest drop since November 2018.

Bitcoin Key Technical Levels

Spot rate: $7,960

Relative change: -80

Open: $8,059.15

High: $8,115.85

Low: $7,937.57

Trend: Bearish

Volatility: Low

Volume: Low

Summary
Bitcoin price analysis: BTC Second Pennant Pattern Consolidation Eyes $7,500
Article Name
Bitcoin price analysis: BTC Second Pennant Pattern Consolidation Eyes $7,500
Description
Bitcoin forms the second pennant pattern in two days suggesting further losses are inevitable. Most cryptocurrency analysts including Forbes’ Naeem Aslam Bitcoin downtrend is far from over.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Post your comment...
John Isige 242 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @