Bitcoin Price Outlook - Preparing a Move or Death by a Thousand Cuts?
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Bitcoin (BTC) News, Price, Chart and Analysis:
- Trading range narrows in a descending triangle formation.
- Bearish chart pattern suggests lower prices.
The price of Bitcoin has gradually moved lower over the last two-and-a-half months with horizontal support around $9,300 holding. The move has set up a bearish descending triangle pattern on the daily chart with lower reaction highs which normally suggests a break lower when support is broken and closed below. However, if Bitcoin breaks and closes above the descending trend, currently around $10,650, then prices may quickly reverse higher and re-test the June 26 high as buyers re-take control of the market.
Either way, while the market may remain constrained by the narrowing triangle in the short-term, a range breakout is likely to occur in the slightly longer-term. Traders need to be aware that breakouts from this formation are normally quite sharp as either buyers or sellers throw in the towel.
Bitcoin (BTC) Daily Price Chart (May – September 12, 2019)
IG Client Sentiment data show that 79.3% of retail traders are net-long Bitcoin (BTC), a bearish contrarian indicator. However, recent daily and weekly positional changes suggest that Bitcoin could soon reverse higher despite traders being net-long Bitcoin.
Chart via CoinMarketCap
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