Bitcoin price analysis for August 17-23: the coin is getting ready for a sharp up move in the next few days
Bitcoin has formed an ascending triangle pattern, and momentum is likely to pick up
Warren Buffet has historically been a huge critic of gold as he believes that it does not have any utility and does not pay any dividends. However, in its latest regulatory filing, Berkshire Hathaway Inc., the company led by Buffet, has dumped bank stocks and has purchased the stock of a gold mining company, Barrick Gold Corp.
This shows that even Buffet is seeking the safety of gold. The same factors that are positive for gold are also bullish for Bitcoin’s price.
In addition, Grayscale Investments recently launched crypto ad campaigns across several TC channels. Barry Silbert, CEO of Grayscale, tweeted that the firm had received record weekly inflows of $217m, which shows increased institutional investor interest.
Let’s do the Bitcoin price trend analysis of the weekly chart and the daily chart to spot the critical levels to watch out for.
Bitcoin price technical analysis: weekly chart
Bitcoin closed last week at $11,915.85 with a marginal gain of 1.94 per cent. During the week, the bears were threatening to sink the price below $11,000, but strong buying at lower levels formed a long wick on the weekly candlestick, which is a positive sign as it suggests that bulls are buying aggressively on dips.
A consolidation near the overhead resistance is a positive sign as it usually ends with a strong breakout to the upside.
The 20-week EMA is sloping up and the RSI is close to the overbought zone, which suggests that the bulls have the upper hand. If the bulls can push the price above $12,137.90, the uptrend is likely to resume. The bears are likely to mount a stiff resistance at $13,839.90, which could be a major sticking point.
However, if the bulls can push the BTC to USD pair above $13,839.90, the next leg of the up move towards the all-time highs is likely.
This bullish view will be invalidated if the pair turns down from the current levels and breaks below the $10,500–$10,000 support zone. Such a move will be a huge negative as it can result in long liquidations by the bulls.
The Bitcoin price weekly analysis shows that the bulls are accumulating on dips, which is a positive sign. Can the buying continue at higher levels? Let’s do the BTC price analysis of the daily chart to see if we find any bullish setups on it.
What is your sentiment on BTC/USD?
Bitcoin price technical analysis: daily chart
Bitcoin has formed an ascending triangle pattern, which will complete on a breakout and close (UTC time) above the $12,000–$12,137.90 resistance zone. This bullish setup has a target objective of $13,773.30.
The rising moving averages and the RSI close to the overbought zone suggests that the bulls are in command.
However, if the pair turns down from the current levels, it can dip to the 20-day EMA. A strong rebound off this support will indicate accumulation on dips and is likely to result in one more attempt to push the price above the triangle.
Conversely, if the bears sink the price below the 20-day EMA, it will signal weakness and could result in a drop to the $10,500–$10,000 support zone.
How to trade Bitcoin this week
If the bulls can push the price above $12,137.90, the momentum is likely to pick up and quickly move up to $13,000. Therefore, traders can wait for the price to sustain above $12,137.90 for a few hours before considering long positions.
On the downside, a strong rebound off the 20-day EMA could also offer a low-risk buying opportunity to traders. However, if the 20-day EMA breaks down, a deeper correction is likely.
FURTHER READING: Bitcoin explained simply: everything you need to know
FURTHER READING: Bitcoin vs Bitcoin Cash vs Bitcoin SV: the ultimate guide