Bitcoin price analysis: bearish signs on the chart

تحلیل قیمت بیت کوین: نشانه‌های نزولی روی نمودار

On the Bitcoin price chart, there are many technical bearish signs in different time frames. Analysts say that Bitcoin’s weekly candle closing below the $18,300 level for two consecutive weeks could lead to a price drop to the $13,900 support.

To Report CoinDesk, less than 12 hours before the announcement of the final decision of the Central Bank of America to increase the bank interest rate again in this country, the Bitcoin market has taken a defensive position and according to Katie Stockton, director of Fairlead Strategies ), the price seems to be on track to retest the $18,300 support; A level that, if broken, will worsen the current bear market situation.

Bitcoin is currently hovering around $19,000 and the price has dropped nearly 2% in the last 24 hours. Last week, this digital currency appeared unsuccessful in crossing its 10-month trend line and the resistance of the Ichimoku cloud indicator that had crossed together. The same thing made the sellers dominate the market once again.

Stockton says about this:

Bitcoin reacted negatively to the US August inflation data released last week and failed to break through the Ichimoku cloud resistance ($22,000) on the one-day view.

Bitcoin price analysis: bearish signs on the chart
One-day Bitcoin price chart with Ichimoku cloud indicator.

As can be seen from the one-day view of the Bitcoin market, the MACD histogram has fallen below the zero level, which could indicate the beginning of a new downtrend.

The manager of Fairlead Strategies has said in this regard:

According to the selling signal seen in the one-day MACD, it can be said that the short-term price momentum has changed from positive to negative. If the price reaches the long-term support of $18,300 again, there is a risk of Bitcoin falling [به سطوح پایین‌تر] increases.

The sell signal mentioned by Stockton appeared after buyers failed to break the downtrend line on the chart, the Ichimoku cloud resistance, and the 50- and 100-day moving averages.

The Ichimoku cloud indicator, which Goichi Hosoda, a Japanese journalist, invented in the 60s, includes two separate lines; One is the leading line A and the other is the leading line B. Both of these lines are drawn 26 days ahead of the last candle on the chart, thus displaying possible future supports and resistances.

Also read: What is the Ichimoku Cloud? Teaching how to use technical analysis

Crossing above or below the Ichimoku cloud are mainly considered as the first signs of a trend change (upward or downward) in the market. In addition, the inability of the price to cross the resistance of this index, like the current situation of Bitcoin, can be a sign to strengthen the downward trend prevailing in the market.

Traders are now focusing on one of the Fibonacci retracement levels, which has formed support near $18,300 and is evident in the chart below.

Bitcoin price analysis: bearish signs on the chart
Weekly Bitcoin price chart with Ichimoku cloud, MACD and Stochastic indicator.

Stockton says:

Bitcoin’s weekly candle closing below the $18,300 level for two consecutive weeks indicates an extension of the bearish trend and will increase the risk of a fall to the next key support at $13,900.

Stockton has warned that the long-term downward momentum of the price is increasing, and this issue is clearly visible from the one-month MACD histogram. Data from the Delphi Digital platform shows that most of the Bitcoin transactions (in terms of volume) over the past 3 months have been done at prices higher than the current Bitcoin price. As a result, a fall below $18,300 can create a serious selling pressure in the market by eliminating long trading positions.

Andrew Krohn, researcher and analyst of Delphi Digital Group, said:

Almost everyone who has bought and held Bitcoin in the last 3 months (as well as those who have done so in the last 2 years) is now either at a loss or very close to a loss. If the price continues to fall, some investors will sell.


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