Bitcoin (BTC) Price Analysis 20/08

Price Predictions
Thu, 08/20/2020 - 18:02
Denys Serhiichuk
Has Bitcoin's short-term correction ended? Is another downturn possible?
Bitcoin (BTC) Price Analysis 20/08
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

A more profound cryptocurrency market correction might have started as all coins from the top 10 list are in the red. Bitcoin SV (BSV) is the biggest loser, having declined by 2.50% since yesterday.

Top 10 coins by Coinstats
Top 10 coins by Coinstats

Meanwhile, Bitcoin's (BTC) dominance keeps decreasing, currently sitting at 52.2%.

BTC’s market share
BTC’s market share

The Bitcoin data is looking the following way:

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $218 074 055 039

  • Price: $11 809,52

  • Volume (24h): $22 174 359 787

  • Change (24h): -0.95%

The data is relevant at the press time.

BTC/USD: Сan One Expect Another Rise Attempt to $12,000?

Yesterday the point of control (POC) line ($11,760) prevented the Bitcoin (BTC) price from declining further. At the end of the day, the pair set a local minimum at $11,574 and then bounced back to the POC level of $11,760 to continue moving sideways.

BTC/USD chart by TradingView
BTC/USD chart by TradingView

During the night, trading volumes significantly decreased, and the range of consolidation is now narrowing. Today, buyers might try to test the two-hour EMA55 and reach consolidation above the average price level. If they don't overcome the resistance of the moving average (EMA55), then the decline will continue to the fifty percent Fibonacci level ($11,394).

BTC/USD chart by TradingView
BTC/USD chart by TradingView

On the daily chart, Bitcoin (BTC) quotes are being adjusted again. The price is still above the middle line of the Bollinger Bands indicator, which signals the presence of bulls. An important support area is located at the level of $10,535. Already with the test of this level, one can consider a rebound from the support line on the RSI indicator to be a plausible scenario.

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The scenario will be invalidated in case of a breakdown of the lower trendline of the ascending channel with the price fixing below the $9,810 level. In this case, one should expect a drop to $7,870 and the beginning of the next correction.

BTC/USD chart by TradingView
BTC/USD chart by TradingView

On the four-hour chart, the price bounced off the upper trendline of the ascending channel. Bitcoin has strong support at the $11,225 level, after which one should expect a new attempt to push the BTC price to the level of $12,495. Here is the proximity of the support line on the RSI indicator, a rebound from this line might be a good signal for continued growth. The invalidation of the scenario will be a breakdown of the lower trendline of the ascending channel with the price fixing below the level of $11,150, in this case, a fall to the level of $10,540 is expected.

Bitcoin is trading at $11,764 at press time.

 
About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.