Bitcoin (BTC) Price Stalls At Major Resistance, Is a Minor Correction On Cards?

By Domenic
Published August 29, 2021 Updated August 29, 2021
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Bitcoin (BTC) Price Stalls At Major Resistance, Is a Minor Correction On Cards?

By Domenic
Published August 29, 2021 Updated August 29, 2021
  • BTC price is up 25% over the past month
  • 20MA has acted as support since the bottom in July
  • BTC Price has formed a curve which shows breakout in 1 week or less

Bitcoin (BTC) price has been having trouble tackling the $50,000 mark over the last 2 weeks. After prices surged off the bottom of $29,000, BTC managed to rise nearly 75% in less than a month. Since then, BTC price has been steady within a $5,000 range which has allowed many alt coins to surge past their ATHs. The overall market is still showing bullish signs as many investors are anticipating a push over $50,000 to happen fairly soon.

On the daily timeframe, BTC price looks overextended but this does not negate the possibility of a surge to $55,000 before a larger pullback occurs. 

As BTC price has risen over the last month, each top it has put in has became less parabolic. This BTC price action has formed a curved top along with a curved bottom over the past 35 days (shown in black). The end of this formation is within a week & BTC is expected to have a large breakout sometime before then. It is hard to say whether this is a bullish or bearish pattern but we can use each curve as a reference.

BTC price must break & hold the major resistance zone found at $48,000-$50,200 to experience a large push to the upside. In the case bulls manage to pull this off, expect BTC to reach $53,300 & potentially $56,530.

Bitcoin Price Analysis: BTC/USDT 1 Day Chart

TradingView Chart

Throughout this bullish trend, BTC price has been held up by the 20 day MA. This MA has kept Bitcoin from starting a downtrend as bulls have fiercely bought each time price has reached it. We can use this MA as a good reference to whether BTC remains bullish or is entering a bearish state. If bulls fail to break the major resistance zone & break below the curved formation, we should expect BTC to break below this MA. If this occurs, BTC price will then be in a confirmed bear trend & we should expect prices to land between $42,000-$44,700. 

  • While looking at the Stochastic RSI, we can see how strength has continued to print lower highs despite price printing higher highs. This is considered a bearish divergence & would land BTC price back below $45,000 if it plays out. Strength must break over the trend line to negate this possibility.
  • Looking at the RSI, we can see a channel formation has kept strength going sideways the past few weeks. Strength must break the top trend of this channel for BTC price to have a shot at reaching mid $50,000s. 

BTC Intraday Analysis

  • Spot rate: $48635
  • Trend: Neutral
  • Volatility: High
  • Support: $46600
  • Resistance: $50200
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Domenic
134 Articles
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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