Bitcoin Technical Analysis August 20th

Bitcoin (BTC) rebounded, hitting its 200-day transferring common (MA) yesterday. If the pattern continues, it may possibly rebound to the long-term resistance space at $ 51,000.

Looking forward, the Wyckoff distribution sample means that BTC is prone to fall once more in the direction of the USD 37,300 assist space.

Bitcoin restoration

After the tombstone doji candle was printed on August 18, BTC rose practically 5% to shut at $ 46,765. On August 20th, BTC continued its upward pattern, making an attempt to interrupt the earlier excessive of $ 48,150 on August 14th. Yesterday’s beneficial properties helped the price regain the 200-day MA that BTC has been hovering round for nearly two weeks.

Additionally, BTC bounced off the short-term assist space at $ 44,000, which coincides with weekly S1 assist. Currently, Bitcoin is above the weekly pivot degree at $ 45,973. As lengthy because it stays above this degree, the short-term sentiment might be considered as bullish.

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BTC / USDT each day chart | Source: TradingView

The first main assist space is at $ 42,600, which coincides with weekly S2 assist. If it breaks, the subsequent main assist space is at $ 37,300, the place BTC made the next low on the each day timeframe.

Additionally, an indication of reducing quantity suggests a lower in volatility. Additionally, the BBWP is falling and is now beneath 50. This may result in a pointy transfer – up or down – within the BTC market within the closing days of August.

Technical indicators assist the bullish outlook. RSI has returned from the impartial zone and goes up. After constructing a number of bearish momentum bars, the MACD confirmed indicators of regaining bullish momentum. The stochastic oscillator has shaped a bullish cross and is returning to the bullish zone.

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BTC / USDT each day chart | Source: TradingView

Rising channel and resistance at $ 51,000

The 4-hour chart exhibits that the July 20 macro backside has shaped a bullish parallel channel, with BTC bouncing off the channel’s assist line yesterday and transferring greater. The subsequent goal is the centerline of the channel, close to the long-term resistance space of ​​$ 51,000.

The $ 51,000 zone coincides with the 0.618 fib retracement degree of the general downtrend and the weekly R3 resistance. Hence, it is going to create a robust space of ​​resistance the place the bears will improve promoting stress.

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BTC / USDT 4-hour chart | Source: TradingView

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Another Wyckoff distribution?

Trader @CryptoCapo_ tweeted two bitcoin charts exhibiting a possible repeat of the Wyckoff distribution. This sample was evident when Bitcoin hit an all-time excessive of $ 64,854 between February and May 2021.

Capo famous the opportunity of repeating the identical situation in a shorter timeframe. On the 12 hour chart, we are able to see BTC price rise when the RSI falls, making a hidden bullish divergence (blue line).

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BTC / USDT 3-day and 12-hour charts | Source: TradingView

If so, BTC is prone to fall in the direction of $ 37,000 after encountering long-term resistance at $ 51,000.

You can see the Bitcoin price right here.

Disclaimer: This article is for informational functions solely, not funding recommendation. Investors ought to analysis rigorously earlier than making a call. We usually are not chargeable for your funding choices.

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