Key points from Analysis:
- Bitcoin short positions are likely to rise as the downward target shifts to lower levels.
- The short-term technical picture shows the price narrowing down within a falling triangle pattern.
Bitcoin is likely to be making the last of its upward movement according to the XBT/USD daily chart. Its downward target is gradually shifting from $10,200 to below $10,000. In fact, an analyst with Tradingview BbiKkuMi hopes that
“it will continue to fall down to the low of the box section ($9,534) and hen rise along the heating line. If this happens, I think the Altcoin rise will begin some in October (after October 19th).”
XBT/USD daily chart
XBT/USD price chart by Tradingview
The short-term technical picture shows the price narrowing down within a falling triangle pattern. While the upside is slashed gradually the downside has remained relatively stable and leveling on the baseline at $8,910.50.
Bitcoin price is also in the lower channel of Andrews Pitchfork. This presents two options for Bitcoin. The first being detrimental but support the scenario in the first paragraph.
In other words, a drop below Andrews Pitchfork lower channel support could stir an increase in short positions that will push the price below $10,000.
The second scenario will take place in case Bitcoin breaks above the falling triangle resistance. This move will see an increase in Bitcoin’s long positions as investors bet for the price to hit $11,000. Moreover, resurfacing above the middle channel support of Andrews Pitch will most likely propel Bitcoin to highs above $12,000 and $13,000 respectively.
Another analysis by joe_btc on Tradingview predicts that Bitcoin is heading to $9,350.