Recently, Bitcoin’s trading price ended up falling below the symmetrical triangle’s support line. This was a huge upset for the investors who had thought that the price of Bitcoin may continue moving higher.
Bull Trap
However, the investors saw the trading price of Bitcoin fall below the symmetrical triangle and ended up breaking below the support line. The data shows that the price of Bitcoin started experiencing a rise on July 7.
As the price of Bitcoin fell and went below the symmetrical triangle, it suggested that the rally recorded on July 7 was just a bull trap.
It means that the bulls formed a strong rally in order to show other investors that a bullish trend had been formed. Looking at the opportunity, the investors started purchasing Bitcoin on a higher scale.
However, the moment the trading price of Bitcoin came close to a resistance mark, the bulls pulled out, causing a strong selling spree. This resulted in pulling down the trading price of Bitcoin.
Bitcoin’s Movement Down to $15,000
As the price of Bitcoin has started to experience a dip, investors are trying to push its price higher. They have been buying Bitcoin with a lot of effort in order to push its price higher.
Now, a candlestick pattern has been formed for Bitcoin which shows that a long wick has been formed. It suggests that the bears have been selling Bitcoin on a higher scale the moment it is coming close to $20,796. The data suggests that $20,796 is the EMA for Bitcoin.
The technical analysis suggests that the moving averages for Bitcoin are moving in a downward direction. Even the RSI for Bitcoin is moving in the negative direction, which is a strong indication of a bearish trend. It shows that the bears are in power and running the trend is in their power.
If the bears succeed in pulling the trading price of Bitcoin below the 20-day EMA, then it will move down to $18,626. It is also expected that with the strong selling power, the bears may also succeed in pulling the trading price of Bitcoin down to $17,622.
This is an important support level for the bulls to support. If they fail to support the particular level, then the price of Bitcoin may end up falling to $15,000.
Bitcoin’s Upward Movement to $24,084
If the bulls are able to demonstrate a stronger run versus the bears, then Bitcoin may get pushed over the 20-day EMA. In this particular case, the trading price of Bitcoin may start moving higher.
If that happens, then the trading price of Bitcoin may move up to a 50-day SMA. The data suggests that $24,084 is the 50-day SMA.
