As mentioned in the crossroads article, Bitcoin has successfully invalidated the support after breaking out of the rising wedge and closing below it in the one hour chart. The short-term prospect for Bitcoin from hereon looks bleak and gloomy as, at press time, the price of Bitcoin was $9,943, after it had collapsed by more than 8% in 10+ hours.
One-Hour
Source: TradingView
Considering where Bitcoin is at press time, there is no definitive support. So, the path of least resistance would be for it to keep slumping until it hits support at $9,720. The price might falter here for a while, where it will face yet another crossroad, and has to decide to either bounce back up or breach it.
Path 1
If the price does bounce from $9,720, it will regain the $10,000-level. The subsequent levels that BTC has to conquer include – $10,435, $10,700, and so on.
Path 2
However, if the support at $9,700 gets breached, the only logical move for Bitcoin will be $9,440, which is also the 0.382-fib level. This level was previously seen on August 15, after a massive slump. If the bearish momentum continues, the price will dip to $9,330.
At this point, the probability of a takeover by bulls is more likely, which would halt the bear parade.
Four-Hour
Source: TradingView
The 4-hour chart is more bearish than the one-hour chart, as the price has breached the pennant after adhering to it for over 11 weeks. If the breakout is true, Bitcoin can easily head down anywhere between $9,320 to $8,830 in a medium time frame. The break out of the pennant can be surely confirmed in the next 8 hours, when the current and the subsequent candles close, i.e. at 1600 UTC.
Supporting this breakout is the MACD indicator, which shows a freshly invoked bearish crossover in the 4-hour time frame. This screams lower lows for Bitcoin and nothing else.
If the break out of the pennant is a fakeout, then the chances of Bitcoin regaining the $10,000-level seem more than likely. It could even hit $11,600 on an extremely bullish, hopeful day.
Targets
Short-Term Target [24 hours]
- $9,720
- $9,430, $9,330 on an extremely bearish day
If the price bounces at $9,700
- $10,135
- $10,435
Medium-Term Target [48 hours – 72 hours]
If the candle closes red at 1600 UTC
- $9,430
- $9,330
- $8,830
