Bitcoin prices (BTCUSD) have stabilized in the last few days following the sharp one day decline of 11.85% decline exactly one week ago. The prices have found support as they approached the June low of $7435.57, and might be able to stage a bounce from current levels as long as the June low holds. However, any bounce would probably be seen as a correction against the downtrend from the 2019 high of $13861. Potential levels that bitcoin prices might reach are the 38.2% correction level at $8830, followed by the 50% level at $9303. These levels are derived by drawing Fibonacci retracements levels from the August 20 high of $10961 to yesterday’s low of $7707.
Following the break to the August 29 low of $9315, Bitcoin prices triggered a large triangle pattern, that had been building between June and August. The pattern is constructed by a downward sloping trendline via the June, July, and August highs, while an upward sloping trendline goes via the July 17 and 28 lows, and the August 29 low. Subtracting the difference in the triangle trend lines from around August 8 provides a target of 6791.06, that remains unmet.
As the overall trend is bearish, and the triangle target has not been met, I suspect that trades will use a bounce to short-sell Bitcoin. However, if the price manages to establish itself above the September 24 high of 9779, the triangle pattern will fail, and the bearish momentum will abate.
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