Disclaimer: The results of the following analysis may or may not materialize in one week as the variables involved and under consideration are too precarious for the year 2020 y Bitcoin Revolution is stepping into deep water again. In fact, the world’s largest digital asset has been traded in this range only three times in the last 7 months. Therefore, based on its previous rallies, BTC’s long-term narrative could be leaning towards another bearish outcome. However, there are different factors that come into play for the current recovery. Therefore, it is possible that the cryptogram will deviate from its previous performance.
Bitcoin was valued at $10,340 at the time of writing, with a market capitalization of nearly $200 billion and $190 billion.
Bitcoin 1-Day Chart
A direct analysis of the 1-day graph for Bitcoin showed a breakdown of a symmetrical triangle pattern. In typical fashion, the bullish breakout broke two key resistance levels at $9701 and $10,017, and the price of Bitcoin was still moving in the right direction, at the time of printing. On closer examination, it can be seen that Bitcoin had reached the trading range at the time of printing only for the third time in 2020.
On the two previous occasions, the price had recorded an immediate decline, falling below $8879 each time.
Considering an ideal correction period, Bitcoin may fall by as much as $10,000 in the next few days before embarking on a new annual high of around $10,900-11,000. It’s not set in stone, but the possibility is very high.
Bitcoin’s market indicators also reflected the market.
The Relative Strength Index or RSI for the BTC was in the overbought zone for the third time this year, a finding that indirectly suggested that a potential reversal could be in the cards. The MACD remained bullish as the blue line continued to float above the red line.
Will Bitcoin finally register a new high in 2020?
Frankly, the BTC’s press time price position is fraught with uncertainty. Users can idolize the accompanying chart and keep their hopes for a new high. As noted, on the three previous occasions Bitcoin reached $10,000, the price witnessed an immediate red candle, indicating a reversal. At the time of writing, Bitcoin was on track to register consecutive green candles for the first time in 2020 after reaching $10,000.
It is therefore definitely possible that the world’s largest digital asset could gain further momentum from here, but the RSI casts a shadow of doubt. As noted above, Bitcoin is already in the overbought section, a development that means that setbacks may be on the cards.
The key for Bitcoin would be to consolidate above $10,000 this time if it wants to maintain its hopes of exceeding $10,000. In fact, the signs are largely positive, but will become clearer in the coming days.
Bitcoin could consolidate between $10,000 and $10,450 in the coming days and possibly record a new annual high after the second week of August.