Bitcoin price chart analysis: bearish warning
15:19, 24 August 2020
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.
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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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.
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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