Bitcoin Price Action Hints A Revisit To $18500; Buy Again?

A bear cycle within the descending triangle pattern has breached in between support of $19600. This breakdown should accelerate the ongoing selling pressure as the market sentiment is already in fear, with interest hikes in November. Thus, The potential downfall may plunge the Bitcoin price back to $18500.

Key points:

• The falling prices breached the 20-day EMA support
• A lower price rejection below the $19400 stall the buyers wrestling for trend control
• The intraday trading volume in Bitcoin is $16.8 Billion, indicating a 4.5% loss

Source-Tradingview

The Bitcoin price chart shows the formation of a descending triangle pattern. The coin price has retested the pattern’s barriers, i.e., descending trendline and $18500 neckline support, several times indicating the traders respect those levels. 

Furthermore, the lower high formation within this pattern reflects the gradual decrease in bearish momentum. Thus, if the daily candle closes below the $18300 mark, the accelerated selling pressure will prolong the prevailing downfall and may plunge prices to $16500.

As of now, the Bitcoin price recently turned down from the combined resistance of the downsloping trendline and 20500. The resulting downfall fueled by the release of US unemployment data pulled the coin price below the local support of $19500.

However, the coin price tries to retest this breached resistance as a viable resistance. If the selling pressure persists, a downfall of 5% is possible to hit the $18500 bottom support. 

On a contrary note, if the buyers break above the resistance trendline, the bearish thesis will get invalidated. 

Technical Indicator

Relative Strength Index: despite a sideways price action, the daily-RSI slope shows a sustained rally indicating the buying activity rising at $18500. The evident bullish divergence in this indicator suggests a significant possibility for a trendline breakout.

Bollinger band indicator: The coin price trading above this midline support indicates the market sentiment is bullish. Moreover, the indicator’s midline support is trying to stall the ongoing downfall.

Bitcoin Price Intraday Levels

• Spot rate: $19489
• Trend: Sideways
• Volatility: Medium
• Resistance level- $20600 and $21800
• Support level- $19600 and $18500-18300