Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
In the most recent analysis on 19th August 2019, Cryptoriate mentioned potential order blocks acting as a support spanning $10,000-9,000 and $8,500–7,000.
This was the weekly chart posted in August 2019:
Bitcoin fell through the first order block and bounced nicely from the second block giving a 40% gain within two days. The price dipped to $7,293 on Bitstamp, bounced and liquidated a massive number of shorts betting on downsides, pushing it to $10,350 within two days. Does this mean that Bitcoin will continue towards the upside? In this analysis, we will analyze probable scenarios and possible paths BTC can take in the upcoming weeks.
On monthly TF, the uptrend from December 2018 is still intact and remains a strong indication that BTC could follow the upsides after consolidating for some more weeks.
Bitcoin bounced off 61.8 fib level, drawn from the Dec 2018 low of $3,122 to Jun 19 high of $13,880. On the weekly TF, 100MA was also close to the fib level and helped cement the support level. Bulls took full advantage of the situation and propelled BTC to low 10K levels. On Bitmex, 150M shorts were liquidated which was the major fuel for the price to go up.
However, this does not guarantee that the price will continue higher. The path BTC will follow depends on certain contingencies. On the weekly TF, the 21MA, currently at $9,871, is an overhead resistance. A weekly close above, and price sustaining above the MA for at least another 2 weeks will be a strong indication of the upside continuation. However, on the downsides, $9,000 is the interim support, followed by $8,500 and $7,700 (100MA). A close below $9,000 will indicate downsides in the following weeks.
A closeup of weekly chart:
On the daily TF, BTC is consolidating between 100MA (as resistance) and 200MA as support. A point to note here is that 200MA was a strong resistance since Sep 19 and BTC finally rampaged through it. Currently hovering around $9,128, the 200MA on daily TF is a strong support now. However, a daily close below followed by two consecutive closes under the line could mean that BTC has lost the support and could dip lower. On the upside, 100MA is the interim resistance at $9,588.
Conclusion:
The macro trend remains bullish for Bitcoin amid all doom and gloom talks on twitter, etc. Current price action indicated consolidation between $9,000 and 9,500 for a few days until a clear break above or below the range is printed on the charts. On the weekly TF, the overhead resistance of 21MA is holding Bitcoin down but $9,000 is acting as a support. On the daily, 100MA is keeping Bitcoin from breaking above and 200MA, at $9,128, is keeping Bitcoin from breaking below. The future direction will be revealed soon.
Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
