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Bitcoin short-term price analysis: June 28



Bitcoin short-term price prediction: June 28
Source: Unsplash

Bitcoin dipped down to $8,830 yesterday, however, it closed only 1.63% below from where it opened. While this is a relatively small move, the price seems to have conformed to a downtrend due to consecutive lower lows and highs.

To understand what’s happening on the lower time frame and why Bitcoin is heading down, it is necessary to take a look at the big picture. Attached below is the one-day chart for Bitcoin, which shows the formation of a pattern similar to the one seen in September 2019.

BTCUSD TradingView

Although fractals look similar, it doesn’t necessitate a drop of similar extent. The drop that BTC is yet to experience [based on the fractal formation] will depend on the current support and resistance levels. As seen above, these support levels range from $8,830 to $8,630, this is where the initial drop will be absorbed and it is a critical level that can prevent further drop.

However, breaching this level would leave the price exposed to the level at $8,360. As the price hits the $8,360, more sideways movement can be expected, very similar to what happened after the price dropped in September 2019.

Bitcoin four-hour chart

BTCUSD TradingView

From the above chart, it can be seen that the price is forming a descending triangle, which has an inherent bearish bias. The breakout from this pattern can be expected to head down, further validating the downtrend. The price has already tested $8,830 and bounced higher, which shows promise, at least for now.

With BTC closing below 50-DMA [yellow], it further strengthens the above theory. What’s more interesting is the final target of $8,360 perfectly converging with 200 DMA [purple].

Although it was mentioned that the bull run would start soon, there is still enough space and time for the price to dip down to $8,100 or even $8,300.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.