September 8, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $9,600

The dynamics of Bitcoin (BTC) rate went beyond the bullish trend that started in March. Therefore, the downward trend will continue in the market, and BTC/USD will fall in price to $ 9,600 by September 15.

Key Points

  • BTC price is consolidating above the support zone around $ 10,000.
  • A downtrend line has formed with resistance at $ 10,300 on the hourly chart.
  • The growth in the volume of BTC/USD sales increases the pressure on Bitcoin, as a result of which the value of the asset creeps down.

On September 1, Bitcoin was pumped to $ 12,065 (on the Bitstamp exchange), then the cryptocurrency began to be dumped. For three days, BTC/USD lost 18% in price, the bottom around $ 9,900 was reached on September 5. After a minor correction, the coin was merged again, this time to $ 9,880. On Monday, Bitcoin value rose to $ 10,400, but on Tuesday it began to fall again.

There is a double bottom on the chart. This pattern indicates an impending reversal in the market. To seize the initiative, buyers need to break through the resistance at $ 10,400. In this case, the price of BTC will increase to $ 10,500.

btc chart

However, the likelihood of a positive outcome is extremely small. On September 2, the line of the upward trend that emerged in March was broken. A powerful dump indicates a trend change. If the BTC rate fluctuates within the formed patterns, then within the next week the value of the asset may correct up to $ 10,700, and as a result of the downward movement, the price of the coin will drop to $ 9,600.

btc chart

Bitcoin Keeps Dropping

A head and shoulders pattern is forming on the chart. The right shoulder is formed if the asset price drops to $ 8,900. In this case, the value of BTC will begin to decline sharply, while the support level of $ 8,900 will become a resistance barrier. When this scenario is worked out, Bitcoin should fall in price to $ 4,000-5,000. But the average price of an asset over 200 weeks is $ 6,600, so the bottom could be at that point.

btc chart

Some traders believe that the coin’s rate will decline to a gap on the CME exchange around $ 9,700. If the purpose of the dump is to reach a gap, then the price of the cryptocurrency will continue to rise after it drops to $ 9,700 and returns to the $ 12,000 level.

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI index is below 40 (in the neutral zone).
  • Major Support Level – $ 10,000.
  • Major Resistance Level – $ 10,500.
  • The nearest pivot points are $ 9,649 and $ 10,652.
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