Bitcoin dipped below $10,000 after nearly reaching $11,000. Despite the bullish sentiment seen across the market following Bakkt’s approval for physically-settled Bitcoin futures, BTC is sitting at a pivotal point that could mark the direction of its trend in the near future. The following technical analysis will evaluate the price points that could signal the next major move for Bitcoin.
Bitcoin Technical Analysis
The recent $1,000 move is clearly visible on the 12-hour chart. After BTC failed to break below the 200-twelve-hour moving average on Aug. 15, it quickly bounced off to the 150-twelve-hour moving average. Then, BTC consolidated around this area for four days to finally rise to the 100-twelve-hour moving average on Aug. 19.
As the volume behind Bitcoin’s move faded, the cryptocurrency failed to break above the 100-twelve-hour moving average. The result was a 7 percent correction. BTC could drop another 1.20 percent or more to test the 200-twelve-hour moving average again.
BTC/USD by TradingView
The 200-twelve-hour moving average holding or breaking is critical. Currently, Bitcoin is continuing its trajectory within a descending parallel channel, which is part of a major bull flag that has been forming since mid-June. This is considered a continuation pattern that developed after the 84.50 percent upswing BTC experienced from June 10 until June 26, known as the flagpole—which was succeeded by the current consolidation period, known as the pennant.
If this bullish formation is confirmed, it is likely that Bitcoin will end up moving in the same direction of the previous trend—predicting a 45.80 percent surge from the breakout point (determined by measuring the height of the flagpole).
Because the 100-twelve-hour moving average rejected the price of BTC, it prevented it from a further upswing that could have taken it to the top of the channel.