The daily candle of August 16, 2021 has the shape of a bearish engulfing candlestick. In addition, the Bitcoin price broke below an ascending support line on this day.
The Bitcoin course could validate the support line as resistance. If that happens, the Bitcoin price could drop to one of the next support levels.
Bitcoin price daily chart analysis
Bitcoin price has fallen since peaking at $ 50,500 on August 23, 2021. The high point is near the 0.618 fib retracement level (black) at $ 51,200. There was also bearish divergence on both the RSI and the MACD prior to the move down.
The next main support area is at USD 42,400, where the 0.382 Fib retracement level (white) and the supertrend support line (green) are also located.
Short-term price outlook
The 6-hour chart is similar to the daily chart. Before the drop, there was also a bearish divergence on the RSI and MACD on the 6-hour chart. You can also see on the 6-hour chart that the Bitcoin price fell below the ascending support line on August 26, 2021. If the BTC price does not rise again above the support line, then the BTC price will probably drop at least to the support area at 42,400 USD.
There is no evidence on either the MACD or the RSI that the current downtrend will reverse. Therefore, the downward trend is likely to continue.
Bitcoin course long-term outlook
The long-term trend cannot be clearly determined at the moment. However, the Bitcoin price will fall for the first time with the bearish variant of wave counting as well as with the bullish wave counting. If the last upward movement, which ended at the high point, is part of the third wave of a bullish impulse, then because of the principle of alternation we will first see a sharp corrective movement. According to the principle of alternation.
If, on the other hand, the Bitcoin price has completed an ABC correction structure during the upward movement, then the BTC price will probably first fall to new lows. In both cases, the BTC price would initially fall to the 0.382 Fib retracement level. The second scenario seems more likely at the moment.
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Translated by Maximilian M.
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