Bitcoin’s price has been undergoing crest and trough-like movement, ever since its fall on 24 September. With sharp rises and simultaneous drops, the world’s largest cryptocurrency has not managed to recover from its previous fall. Recently, Bitcoin’s price saw a boost, which could have turned the trend to a bullish one. However, the coin failed to surpass the resistance at $8,290, causing its to tumble.
At press time, a favorite Simpsons’ character had returned to the BTC market, and pointed at an upcoming fall in the price of the king coin.
Source: BTC/USD on TradingView
The one-hour chart for Bitcoin suggested the formation of a Bart pattern. This pattern is characterized by a sharp price movement in one direction, followed by a period of consolidation, and a sudden spike in the other direction, something that has been observed in BTC markets repeatedly. According to the chart, the pattern has already marked a sharp rise, followed by a consolidating price and has begun its descent to test the support at $7,885.82. This support has been tested before on five different occasions by BTC and thus, it is likely that the coin might breach this support and fall further.
The 50 moving average was resting over the 100 moving average after a recent crossover, noting the bearishness in the market. The averages aligned over the candlesticks highlighted extreme bearishness.
Source: BTC/USD on TradingView
The MACD indicator pointed at a bearish trend in the market as the MACD line was under the signal line. The crossover took place as the price of BTC began to slip. The Relative Strength Index noted that Bitcoin had entered the oversold zone and was trying to attain equilibrium.
Conclusion
The price of Bitcoin might test its immediate support, following which, it might fall further and increase the bearishness of the market.
