Bitcoin (BTC) Price Analysis for 22/08

Price Predictions
Sat, 08/22/2020 - 14:44
Denys Serhiichuk
Was the bounce at $11,400 the start of an upswing for Bitcoin (BTC)?
Bitcoin (BTC) Price Analysis for 22/08
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.

The weekend started with the ongoing correction as most of the Top 10 coins were in the red except for Chainlink (LINK), which rose by almost 5% yesterday.

Top 10 coins by Coinstats
Top 10 Coins by Coinstats

Meanwhile, the dominance rate for Bitcoin (BTC) has declined slightly since yesterday and its current index sits at 58%.

BTC’s market share
BTC’s Market Share

Below is the relevant data for Bitcoin (BTC) and how it's looking today:

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $214,353,383,304

  • Price: $11,606.89

  • Volume (24H): $24,290,199,536

  • Change (24H): -1.47%

The data was relevant at press time.

BTC/USD: Can One Expect Another Retest of $11,500 Before Continuous Growth?

Bitcoin (BTC) has confirmed the lack of strength by the bulls as buyers could not fix above the $12,000 mark for a significant amount of time. The rate for the leading crypto has dropped 2.17% in the last 7 days.

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

Looking at the hourly chart, Bitcoin (BTC) bounced off its $11,400 support zone. The decline did not continue further due to the low selling volume.

Related Bitcoin (BTC) Price Analysis 20/08
Related
Bitcoin (BTC) Price Analysis 20/08

Even though the correction may not have ended, one must consider a short-term rise in liquidity to the $11,700 mark. Rather, it is a correction after a sharp decrease and not the start of a continued bull run.

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

Looking at the bigger time frame, the bearish scenario is still relevant as the trading volume continues to go down, which does significantly affect the rate of Bitcoin (BTC). The liquidity level is also low, which means that the nearest support where the bullish trend may continue is at the $11,000 mark.

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

Looking at the weekly time frame, the situation is almost identical. The bears have seized on the initiative, and within the upcoming weeks, are likely to be bearish. Furthermore, a bearish divergence is forming on the Relative Strength Index (RSI), which considers the ongoing price drop. Moreover, the trading volume remains at the same level, which is also a signal of a decline. If the bulls do not hold at the $11,00 mark, then the next stop is $10,500.

At press time, Bitcoin was trading at $11,587.

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.