Today, the Bitcoin or BTCUSD pair moved below the pivot points and might trend towards the current support levels. A Bearish divergence below $6200 could be seen if the price failed to gain momentum from this point. Here is the Bitcoin Price Forecast for the short term time-frame.
20 September, AtoZ Markets – The Bitcoin or BTCUSD pair is trading in a range bound zone near the $6400 levels with the market cap of around $110 Billion. As we can see the price remains in the range bound zone at $6500- $6400 level. The pair seems to be consolidating at this point since the dip from $7417 level which was on 5th September. This zone will be considered a crucial point for the Bitcoin as a miner would be required to burn a block of “at least” 12.5 BTC worth about $80000. Also, a significant bullish momentum was seen from the yesterday’s lows i.e $ 6,131.02 which took the pair above $ 6500 mark. Will the Bitcoin price break below the $6200 handle soon?
Bitcoin Price Forecast
According to the technical charts, the Bitcoin is forming a Deliberation Bearish Candlestick pattern in 1D time-frame which signals that during an uptrend, three white candles occur with consecutively closes higher. This pattern is a derivative of the Three White Soldiers pattern and is very similar to the Advance Block pattern. Even though an bullish momentum continues, the small third body suggests that the previous rally is losing strength and preparing for a reversal.
The 100 Simple moving average line recently crossed below the longer-term 200 Simple moving average to signal that the path of least resistance is to the downside. In other words, the BTCUSD might break its first support than to hold. Moreover, the RSI(14) line is moving above 50%, thus there may be some buying pressure still left. Heading further up until it reaches the overbought zone might take the BTC price along with it. Thus, if the BTCUSD pair failed to gain momentum from this point then it is more likely that it could break the strong support near $6200 level and the price might dip towards $6000- $5900 levels in coming days.
- The relative strength index(14) value is above 50 which signals “Buy.”
- The STOCH (9,6) valued just below 50 signals “Sell” in weekly time-frame.
- The MACD(12,26) – “Sell” signal in weekly charts.
- Moreover, according to ATR(14), the BTCUSD pair is less volatile.
BTCUSD Pivot Points
The BTCUSD pair has a significant support near $6240 level and resistance near $6690 levels.