The Bitcoin price has only fallen slightly in the last week. Last week’s opening price was $ 49,239 and the closing price was $ 48,808.
Bitcoin price has broken below a descending support line and is likely to fall to the key support level at USD 42,400.
Bitcoin price weekly chart analysis
In the last week (23-29 August 2021) the Bitcoin price was not particularly volatile. The weekly low was $ 46,250 and the weekly high was $ 50,500. On the weekly chart there are indications that the Bitcoin price will rise as well as that it will fall.
BTC price has broken below a long-term support line and could potentially validate it as resistance. In addition, the supertrend resistance line is currently close to the other line. Additionally, last week’s trading volume was relatively low compared to the May 19, 2021 crash. All of this suggests that the Bitcoin price will fall for the time being. However, the rising MACD gave us a bullish reversal signal. The RSI has also risen to over 50. So we have to look at the low timeframes to predict the next price move.
BTC course in case of decisive resistance
Even the daily chart does not give us any clear indications of the direction in which the trend will develop. The BTC price is just below the resistance area at USD 51,200. There is probably a horizontal resistance area as well as the 0.618 fib retracement level. There is also a bearish divergence on the RSI and on the MACD. This led to a price decline, which, however, does not match the length of the divergence. However, a hidden bullish divergence (yellow) may be developing on the RSI right now.
Trading volume continued to fall during the rally. This suggests that the current upward movement is losing momentum more and more. So the direction of the trend is not yet 100% clear. However, we can only assume that the trend is bullish when the BTC price validates the resistance area at USD 51,200 as support. To do this, the Bitcoin price would also have to rise above the previously mentioned long-term support line. The next level of support is at $ 42,400. There is the 0.382 Fib retracement level, the support line of the Supertrend indicator and a horizontal support area.
Bitcoin price short-term outlook
You can also see on the 6-hour chart that the Bitcoin price has broken below a descending support line. That is why the BTC price could continue to fall soon. At first it looked as if the BTC price had validated the line again as support, but the BTC price fell below this again relatively quickly. Like the daily chart, the MACD and RSI look relatively neutral. Should the Bitcoin price move further towards USD 42,400, however, the indicators will continue to fall and provide us with bearish signals.
The long-term wave count cannot yet be clearly determined. Both the bullish variant (orange) and the bearish variant (black) are both still possible. In both cases, however, the Bitcoin price will fall in the short term. If the Bitcoin price is in the fourth wave of a bullish impulse, then we could see a strong and rapid price decline due to the principle of alternation. After that, however, we would see further upward movement. However, if the BTC price has gone through an ABC correction structure, then the BTC price could fall to even lower lows. In both cases, however, we will initially see a downward movement.
Click here for the last Bitcoin analysis by BeInCrypto!
Translated by Maximilian M.
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