August 25, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $10,500

bitcoin analysis forecast

Bitcoin (BTC) cryptocurrency rate is consolidating in a range below the resistance zone around $ 11,800. If the bulls fail to overcome this barrier, the coin will fall in price to $ 10,500 by September 1.

Key Points

  • The nearest barrier of resistance is located at around $ 11,750, which coincides with the average 100 hours SMA.
  • A downtrend line has formed with resistance at $ 11,700 (Bitstamp data) on the hourly chart.
  • The bulls will be able to seize the initiative only if they break the $ 11,800 barrier.

On August 24, the Bitcoin price fell from $ 11,900 to $ 11,350, breaking several support barriers. However, then there was a correction, as a result of which the coin rate reached $ 11,824, breaking through the resistance at $ 11,500 and $ 11,600. Now the cryptocurrency is trading at 50% Fib recorded during the dump from $ 11,900 to $ 11,350. Moreover, the upward movement will meet strong resistance at $ 11,700.

The chart demonstrates a shrinking triangle with resistance at $ 11,750 and support at $ 11,470. The lines of the pattern will cross on August 28, so the volatility level should be expected to rise on Friday. Most likely, the triangle will be broken down. In this case, the value of BTC will be reduced to $ 11,000 and, if the bulls overcome this obstacle, to $ 10,500.

btcusd chart

Bitcoin Price Could Hit Record High In 2021

BTC/USD fell from $ 12,450 to $ 11,400 last week. But despite this, the coin rate is still holding above the Ichimoku Cloud. If Bitcoin’s price does not fall below this indicator, then the bullish trend will continue in the market. However, historical data suggests that Bitcoin fails to gain a foothold above the Cloud on the first attempt, as a result of which the price of the coin may fall before a new pump.

btc-price-25-08-2

The cycles of the dynamics of changes in the BTC rate indicate that in January 2021 the asset value will overcome $ 20,000 and reach a new record. In this case, an analogy is drawn with the 2017 bull run, when the price of the coin soared from $ 950 to $ 19,783. According to many traders, BTC is now at the stage of consolidation in anticipation of a powerful pump. But there is no longer the former hype around Bitcoin, so it remains a mystery who will finance the coin’s flight to the moon.

Technical indicators:

  • The MACD indicator for 4 hours is in the bullish trend zone;
  • RSI index for 4 hours – above 40 (in the neutral zone);
  • Major Support Level – $ 11,000;
  • Major Resistance Level – $ 11,800;
  • The nearest pivot points are $ 11,405 and $ 11,828.
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