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BTC Analysis – Price has formed this pattern that predicts a drop to $20,000

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BTC is currently still in sideways movement between the $23,000 and $17,600 levels. The last growth was rejected at $22,400. However, another pattern has formed, which predicts a short-term downward trend. Meanwhile, the dominance of the main cryptocurrency holds a value of 44.09%.

BTC created AB=CD harmonic pattern. The targeting of this pattern is mostly at 38.2% and 61.8% of the retracement of the entire pattern. The first target is the level of $20,500, which is very close to the point of control, which reaches $20,380. This area is the first target of price decline in the short term.

Bitcoin and the harmonic pattern

BTC and the harmonic pattern. Source: TradingView

The last growing trend was accompanied bullish volumes, but they are still negligible. The local minimum is currently at the level of $17,600. If this minimum should be absolute bottom for a long-term correction, so buyers should show much more interest. This is not happening yet, so the risk of the correction continuing.

RSI in the short term, it also indicates a continuation of the decline, as it crossed 70 points from top to bottom. So if we summarize the current situation, BTC is bearish in the short term, but still in the sideway structure valid from mid-June. From a medium-term perspective, we need to see shopper activity, otherwise we have to reckon with by deepening the correction.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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