Theprice of bitcoinjust collapsed down through its long-standing support above $ 9, 000 to almost $ 8, 500.
At the time of this writing, the market-leading cryptocurrency is trading around $ 8, 600 – but the extremely volatile nature of this move could have the price affected at print time.
The Descending Triangle Proves Its Bearishness
Many technical analysts have been drawing a descending triangle for months now, which – per classical technical analysis theory – is a bearish pattern.
Though bitcoin managed to put in some slightly-higher highs throughout the pattern – which had some analysts claiming the price of BTC was trading, rather, in a symmetrical triangle – the cryptocurrency market leader has broken down through any support it had in convincing fashion .
Self-Fulfilling Prophecy
Those analysts that had been claiming that bitcoin was trading inside of a descending triangle have largely claimed that $ 8, 500 would be the next major level of support – spurred on by intense buying interest and speculation.
Indeed, this belief has (thus far) proven to be accurate, with the price at Bitstamp almost perfectly hitting $ 8, 500. On other exchanges, the bitcoin price didn’t quite make it that low.
Fibonacci Levels Worth Watching
At the time of this writing, bitcoin is holding on by a thread to its last level of support around $ 8, 500.
Should this level not hold, the next significant level where one may speculate on a bitcoin bounce would be in the vicinity of $ 7, 236. Some analysts have looked at this level as a bit of an overshoot and expect that – should the price of BTC drop that far – it would wick back up rather quickly.
Analysts warn that a drop below $ 7, 000 could trigger a devastating look-out-below situation for bitcoin, taking the market leader’s price all the way back down to $ 5, 430 Ribbon of Resistance
It stands to reason that what goes down must come up, as bitcoin – volatile as it is – never moves in a straight line. *******************
If you are looking for where a potential upwards retracement might meet resistance, the four-hour exponential moving average (EMA) ribbon has a solid history of acting as resistance or support – particularly on the bitcoin CME futures chart.
Last modified (UTC): September 24, (8) (PM
September 24, 2019 7: 52 PM
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