Bitcoin Price Analysis: Bitcoin Drops Below Short Term Triangle Pattern; Strong Support Around $6100

Bitcoin Price Analysis
Chart Source By TradingView

Bitcoin Price Analysis: Bitcoin Drops Below Short Term Triangle Pattern; Strong Support Around $6100

Bitcoin has seen a small price drop totaling -4.3% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around a price of $6278, at the time of writing.

Key Highlights:

  • BTC/USD has penetrated below the short term symmetrical triangle pattern.
  • The market has recently found support at the .786 Fibonacci Retracement priced at $6261.
  • Support levels moving forward; $6261, $6189, $6100, $6032, $5900, $5858.
  • Resistance levels moving forward; $6385, $6453, $6558, $6666, $6715, $6775, $6862, $7053, $7424.

Bitcoin has seen a small price drop totaling -4.3% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around a price of $6278, at the time of writing.

BTC continues to remain the number 1 ranked cryptocurrency and still has shown relative signs of stabilization only moving a total of +0.79% over the past 90 trading days. The 65-month-old coin is now trading at a price that is 67% lower than its all-time high value.

Let us continue to analyze price action for BTC/USD over the short term and highlight any potential support and resistance zones.

Bitcoin Price Analysis

BTC/USD – SHORT TERM – DAILY CHART

Bitcoin Price Analysis
Chart Source By TradingView

Analyzing price action from the short term perspective above we can see the bullish run which totaled a 25% price increase as price action began at a low of $5858 on August 14th, 2018 and extended to a high of $7429 on September 2nd, 2018.

We can see that after placing this high, the market then rolled over and began to decline until finding support at the long-term .786 Fibonacci Retracement level (drawn in black) priced at $6189. The market found support at this level and reversed.

As BTC/USD continued to rise from the support at $6189 it formed a consolidation pattern known as an ascending triangle. The triangle is clearly defined by the upper and lower boundary drawn as dashed lines.

The BTC/USD price drop witnessed today has now pushed price action well below the boundary of the triangle. We can see that the aggressive drop continued until Bitcoin found some support at a short-term .786 Fibonacci Retracement level (drawn in green) priced at $6261. As the market approached this area, the bulls began to step in and stop the drastic drop from increasing.

Moving forward, if the bearish momentum persists within the market and pushes price action below $6261 we can expect immediate support located below at the long term .786 Fibonacci Retracement level (drawn in black) priced at $6189. Further support located below this can then be expected at the long term .886 Fibonacci Retracement level priced at $6023.

IF the bears can continue even further and push price action below $6000 then we can expect more support below at the $5858 handle.

Alternatively, if the bulls can regather momentum at the support at $6261 and push price action higher, we can expect immediate resistance above to be located at the short-term .618 Fibonacci Retracement level (drawn in green) priced at $6385. Further resistance above this can then be located at the long-term .618 Fibonacci Retracement pried at $6453 followed by the short-term .382 Fibonacci Retracement level (drawn in green) priced at $6558.

If the bullish momentum can persist and push the market above $6600 then we can expect more resistance higher to be located at the short-term .235 Fibonacci Retracement level priced at $6666 followed by the 1.618 Fibonacci Extension level (drawn in red) priced at $6862.

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Bitcoin Price Analysis: Bitcoin Drops Below Short Term Triangle Pattern; Strong Support Around $6100
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Bitcoin Price Analysis: Bitcoin Drops Below Short Term Triangle Pattern; Strong Support Around $6100
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Bitcoin Price Analysis: Bitcoin has seen a small price drop totaling -4.3% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around a price of $6278, at the time of writing.
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Yaz Sheikh 49 Articles

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]