CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Bitcoin price chart analysis: bearish warning

By Nathan Batchelor

15:19, 24 August 2020

Bitcoin price chart analysis: bearish warning

Bitcoin hit a fresh 2020 trading high last week, as the largest cryptocurrency by market capitalization rallied above the $12,500 level.

Bitcoin price chart analysis shows that a bearish price pattern on the lower time frames is pointing to a strong downside correction.

Bitcoin medium-term price trend

Bitcoin may need to trade lower before it moves higher again as traders book profits, following the pioneer cryptocurrency’s recent bull run above the $12,400 level.

Bitcoin price technical analysis shows that the recent new multi-month high suggests further upside ahead for the BTC/USD pair.

The recent break above the August 2019 swing high, around the $12,300 level, highlights strong buying demand on Bitcoin, and bulls’ intention to test towards the 2019 trading high, around the $13,800 level.

The daily time frame highlights the 61.8 percent Fibonacci retracement of the April 2019 swing-low to all-time price high, around the $13,500 level, as the next major upside target above the $12,500 level.

BTCUSD-24-08-DAILY

Medium-term bulls may be preparing for a bearish technical correction under the $11,000 level. This is likely to present an opportunity for buyers to position themselves for the next major move higher.

What is your sentiment on BTC/USD?

98973.35
Bullish
or
Bearish
Vote to see Traders sentiment!

BTC/USD

98,973.35 Price
+4.700% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

DOGE/USD

0.39 Price
+4.670% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

XRP/USD

1.43 Price
+29.340% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

ETH/USD

3,375.98 Price
+9.390% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

Bitcoin short-term price trend

Bitcoin price technical analysis shows that short-term bulls remain in control while the price trades above the $11,000 level.

The one-hour time frame analysis shows that a bearish head-and-shoulders pattern has been activated, following the recent decline below the $11,600 level.

According to the size of the bearish head-and-shoulders pattern, Bitcoin could decline by around $900.

A break under the $11,000 support level should increase technical selling this week, and place the $10,500 level into focus.

BTCUSD-24-08-H4

Bitcoin technical summary

Bitcoin technical analysis highlights that a sustained breakout under the $11,600 level could prompt a decline towards the $10,500 level.

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading