Bitcoin Price Action Targets Critical Support as BTC breaks below $9800

It has been nearly 6 weeks since I identified that the Bitcoin price activity was starting to form a descending triangle. All price activity since then has obeyed the boundaries that define this descending triangle, whose upper border connects the highs of the last 6 weeks till date.

With each passing week, Bitcoin price highs have been dropping; it has hardly been able to get above $10,100 in the last week. It has now made a significantly jump lower today, dropping to as low as $9635 before recovering slightly.

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Bitcoin Price Projections

It has resumed its downward trajectory and the expectation is that in the medium-term, BTC should find support somewhere between $9,200 and $9,480.

With Bitcoin price action very close to the apex of the descending triangle, we could be in for a strong resolution to this pattern, which historically should end in a big downside move. If this is the case, the 23.6% Fibonacci level at 7131.50 (of the November 2017 swing high to the Dec 2018 swing low) should act as the initial support.

On the flip side, a surprise news event that triggers an upsurge in Bitcoin prices could negate this pattern. Such an upsurge would have to cause a weekly candle to close above $13,000 for this to hold true.

 

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BTCUSD Weekly Chart

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