The king of cryptocurrency Bitcoin BTC has been soaring as the Bitcoin price moved below the $11700 range on the last 1st of September after moving into two different short term head and shoulders. The king of cryptocurrency is notorious for a well-earned reputation. Be it institutional whales or the well famed fluctuations each price spike always posses more than one risk for traders. On the 2nd of September 2020, Bitcoin price continued to plummet while the king of cryptocurrency failed to find any support in this duration.
While at the time of writing Bitcoin price stands at the $10608.85 mark, it has fallen over $100 in the past 1-hour alone. It seems that Bitcoin price prediction by Trading Shot is coming true. Bitcoin analyst Trading Shot explained on the 1st of September that BTC seems to be in an inflated price hike owing to a pump and dump action. A pump and dump action is when a large institutional investor or whale invests a large amount of money into the market in order to inflate the price before taking stakes out of the market. However, even Shot didn’t expect the dump to push the price below the $11100 mark.
Bitcoin price movement: What to expect?
The current price action seems bleak for not just day traders but hodlers alike. Trading View analyst Wyckoff Mode explains that the cryptocurrency is facing immense downward pressure and it can crash if the support doesn’t jump in quick to give the king some kick back into the bullish signals. While on the other hand, Wyckoff also expected a raise in the price if the cryptocurrency king manages to ward off the current downtrend.
Analyzing the price movement on the 2nd of September, Trading Shot explains that the cryptocurrency can get back into a rally if a combo move strikes, however, he identified a head and shoulder pattern at the same time. Shot believes that the current Bitcoin price movement is an identical pattern as formed on the 3rd of August, 2020.
Pertinent to mention that traditionally head and shoulder movement is associated with an upcoming downward bearish trend, while a reverse head and shoulder is a predictive pattern for bullish trends.
Trading View analyst Alan Master seems to be more confident on the downward building pressure than Trading Shot and his analysis is closer to the current situation.
Masters explain that if Bitcoin price fails to find support at $10411 mark after below the $10744.0 range it is likely to fall below the $10000 mark and into the $9650 range. Master explains the both the MACD is giving bearish divergence signals while the RSI indicators also trend towards a strong downward movement.
While writing these lines, Bitcoin price has managed to stabilize above the $10700 mark after lifting more than $100 in under an hour from $10608 to the current trading price of $10717. Cautious trading is advised as the price movement is still uncertain and a large bearish pattern is still looming over the Bitcoin price chart.
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.