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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.

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ETH/USD

2,902.20 Price
+0.110% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

BTC/USD

76,049.50 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

0.55 Price
-2.160% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

DOGE/USD

0.19 Price
-1.080% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

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.

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