For many, the holiday is over, the warning triangle no longer needs to be used. Or is it? In this analysis we again look at a triangle pattern in the bitcoin course.
Don’t feel like reading? No problem, Axel explains it in no time:
We keep coming back to it
There he is again: the famous triangle. If you have read previous analyzes from us, you may recognize him. The price of bitcoin now moves between two trend lines that move towards each other. And in this way a symmetrical triangle forms.
The course has been stuck in this triangle for several months. Does the course break out at the top or bottom? That remains the question for now. We will probably have to wait until September for the answer, so please wait!
Price movements can also be explained by news. The end of the triangle coincides with the launch of Bakkt on 23 September. Will Bakkt finally go live? Then there is a chance that the price at the top breaks out.
But developments outside of bitcoin also have an impact on the price. Earlier we wrote about the FED, which is going to lower interest rates. The ECB can also do this just like that, probably in September. A negative interest rate is then even possible, making it cheaper to borrow money. According to investor Tom Lee, that has a positive influence on investments in bitcoin.
The bitcoin rate may have dropped considerably since the last summit on 6 August, there is still plenty of hope for recovery. The course finds support in various ways. We start with the 100-day Moving Average, or 100-MA for short.
The 100-MA is the moving average of the past hundred days. You can also see this line as a dynamic trend line. The graph below shows the 100-MA with the purple line. After the price has searched the line yesterday, the value of bitcoin is rising again.
The price of bitcoin also finds support in another area. We have drawn an orange trend line on the graph below. This line served as a resistance in mid-May, but since bitcoin broke out in June, the line has become a support.
The combination of the 100-MA and the trend line gives hope for the short term; will bitcoin continue to rise in the coming days?
Fibonacci also gives hope
Finally, we get one more indicator of stable that you may still know: the Fibonacci series. Leonardo Fibonacci was an Italian mathematician who discovered a simple series of numbers around 1200.
You can describe natural proportions with those numbers. And those numbers have many applications: think of photography or painting, for example. Or the pimple on the nose of your mother-in-law. But these numbers are also often used in technical analysis to determine support and resistance.
In the graph we have placed the Fibonacci series over the bottom in mid-December 2018 to the summit of 2019 at the end of June. The course now finds support on the bottom of the yellow zone. The value on that bottom is around 8,600 euros.
It looks like we’re on our way back to the top of the yellow zone (or the bottom of the red zone, just the way you look at it). That level is 9,972 euros.
The price of bitcoin is moving in an increasingly narrow margin, so we can probably expect an outbreak only in September. So for now it is still a matter of waiting for a major price movement. The support on the MA, the orange trend line and on the Fibonacci level give hope for an increase in the price in the short term.
Also keep an eye on the fundamental news, because the definitive launch of Bakkt on 23 September can lead to a price increase. But news outside of bitcoin can also have an impact. Consider, for example, the recent FED interest rate cut.
Exciting times so! In the short term we cannot expect much special, but in a few weeks bitcoin can easily make a big price movement.
Win a Ledger Nano S
And do you want to win a Ledger Nano S hardware wallet? Then predict the race, and who knows you might be the lucky winner! These are the rules:
- Guess the bitcoin (BTC) course from Tuesday 27 August at 12:00 a.m.
- It is about the bitcoin rate in euros on the homepage of BTC Direct.
- Respond in the comments of the YouTube video or below this article to participate.
- Edited responses are not included.
Respond before Friday, August 23, at 5 p.m.