Crypto News

Bitcoin Price Analysis: Bullish Divergence Forms At $10K, is $11K Next?

bitcoin and crypto trading

Bitcoin breaks 5-day long up-trend, dropping back to key support levels at $9,800. Since then bullish divergence appears to have formed on lower time-frames and could spur a reversal in the coming days.


Bitcoin 1-Hour Analysis
btc77

On the 1 hour chart for the XBT/USD pair, we can see the ascending wedge that formed throughout the middle of August. This wedge was broken two days ago on the 21st of August and has since dropped to key support at $9,800, as mentioned in my previous analysis on Bitcoin.  Since re-testing key support, price action has begun to bounce, and form a short-term reversal.

MACD can be seen visibly rising at the same point in which Bitcoin created two lower lows around $9,800. This could indicate bullish divergence forming around this price point. POC (Point of Control) clearly acting as support around $10,100 as price action test this level multiple times within the last 24 hours.

The market price is seeing a small pump as candlesticks touch the 200 EMA. It’s likely another ascending channel will form over the coming days taking Bitcoin back up to re-test $11,100 which was previously rejected. 500 MA sitting at $10,900 will also be a big resistance point that Bitcoin will need to cross in order to sustain a breakout.

4-Hour Analysis
xbt78

On the 4 hour chart for the XBT/USD pair, we can see the breakout zone highlighted. If price action can muster up enough volume, and bulls clearly re-gain control of the market once the breakout zone has been entered around $11,300, we should expect further upside. It’s likely once price levels breakout through the overhead resistance just below the breakout zone, Bitcoin will surpass both of these highs and proceed to create a higher high.

It appears as if Bitcoin has created a very large consolidation range from around $9,100 to $14,000 over the last few months. Once a break to the upside takes place, this consolidation phase will essentially act as fuel for another volatile move to the upside, similar to what we saw in June.

If the 0.382 Fibonacci level at $9,600 is broken to the downside, it’s highly likely that a strong down-trend will form and will most likely play out for the remainder of 2019. Whichever direction BTC decides to go, for example breaking upwards into the aforementioned breakout zone, or breaking down through the 0.382 the prior phase of consolidation, will act as rocket fuel for that given market direction, whether that be bullish or bearish. Risk management is essential over the coming days and weeks as BTC looks to come out of this consolidation phase.

Do you think BTC will break upwards or start a new long down-trend? Please leave your thoughts in the comments below!

This article is strictly for educational purposes and should not be construed as financial advice.


Images via Shutterstock, XBT/USD charts by Tradingview

The post Bitcoin Price Analysis: Bullish Divergence Forms At $10K, is $11K Next? appeared first on Bitcoinist.com.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Bitfinex Offers Up to $400M For Information Leading to BTC Stolen in 2016
Bitfinex wants to recover Bitcoin stolen from them in 2016, even if that means paying to find the hackers...
Tracing Fishy Risks With Blockchain Tech Amid the COVID-19 Pandemic
The COVID-19 pandemic has highlighted challenges in global seafood supply chains, and blockchain tech may help improve them. COVID-19...
Chainlink Reaches New LINK Price All-Time High Eyeing $10 Next
The price of Chainlink has climbed to new heights as LINK continues to be one of the strongest cryptocurrency...
HaruBank Celebrates One Year of Operations, Showing Strong Growth
Bitcoin Press Release: Blockchain-based digital asset depository service HaruBank celebrates 1 year of giving users market-leading interest rates, with transacted volumes of over...
From Broke To Bitcoin: The Post-Pandemic Rags To Riches Story
The pandemic has brought about tough times on many. The economy is struggling, jobless claims are rocketing, yet thanks...
Sceptre Monitor Review – 27″ Curved Gaming Monitor (C275B-144RN)
Note: This review is in no way sponsored by Sceptre. I had no contact with the company and bought...

Featured Crypto News

Bitcoin Price Climbs to $11,200, But Three Factors Hint at a Pullback
The price of Bitcoin spikes to $11,200 but three key factors suggest that a short-term pullback is likely as...
Bitcoin Could Hit $12K on Ethereum-Tailing Behaviour: Analyst
Bitcoin is eyeing a breakout towards $12,000, according to crypto-chart analyst Josh Rager. The analogy appears out of Ethereum’s...
Unexpected Factor That Suppressed Bitcoin Bulls in 2019 Is Now Gone
If you’ve been involved in the Bitcoin market over the past year, you know of PlusToken. PlusToken was a...
Ether Rockets 50% in 5-Year Anniversary Month: What’s Behind the Rally?
As Ethereum turns five years old, Ether is up 50% over the past month with two main catalysts driving...
This Simple Bullish Pattern Suggest Ripple (XRP) Could Surge Above $0.25
Ripple is up over 2% and it is showing positive signs above the $0.2400 resistance zone against the US...
Will Ethereum Overtake Bitcoin as the World’s Leading Token?
Ever since it was first released to the public in January 2009, Bitcoin has been the leading player in...