Bitcoin Price Prediction – August 31
The Bitcoin price is back above $47,200 as the recovery keeps coming slowly towards the 21-day moving average.
BTC/USD Long-term Trend: Ranging (Daily Chart)
Resistance Levels: $52,000, $54,000, $56,000
Support Levels: $44,000, $42,000, $40,000
BTC/USD price movement on the daily chart is struggling below the $48,000. If the price moves above this level, then the expectation of quick recovery could turn out to be true. At the moment, BTC/USD is seen trading at $47,470 after soaring to $47,987 during the European trading hours. However, the Bitcoin price is seen pulling back to where it is currently trading and could head downwards if the bears step back into the market.
Bitcoin Price Prediction: Bitcoin (BTC) Remains At Risk of a Larger Decline
According to the daily chart, it is important for the Bitcoin price to hold the 21-day moving average within the channel and confirm it otherwise there can come a bearish breakdown when BTCUSD falls below that barrier. However, the technical indicator Relative Strength Index (14) is sending moderate signs as the signal line keeps moving above 50-level which is more likely a bullish trend at the time of the outcome.
However, BTC/USD may confirm the bullish trend if the market price moves above the 9-day and 21-day moving averages while it will continue the bearish trend if the price remains below the moving averages. Meanwhile, a strong bullish spike above the channel may likely take the price to the resistance levels of $52,000, $54,000, and $56,000.
Nevertheless, if the market decides to follow the downward trend, the Bitcoin price could hit the nearest support at $45,000, and should this support fails to contain sell-off; the market may experience another drop to the critical supports of $44,000, $42,000, and $40,000.
BTC/USD Medium-Term Trend: Bearish (4H Chart)
According to the 4-hour chart, BTC/USD is trading below the 9-day and 21-day moving averages. However, the intraday trading is looking bearish; as the red-line of the 9-day MA remains below the green-line of the 21-day MA, the coin may continue to follow the downtrend. Meanwhile, the next key support level is located at $46,500 and below.
On the contrary, if the buyers reinforce and power the market, traders may expect a retest at the $48,000 resistance level, and breaking this level may further push the price towards the resistance level of $48,500 and above. Meanwhile, the Relative Strength Index (14) moves below 50-level to confirm the bearish movement.
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