Bitcoin Price Technical Analysis (July 17): The Panic Before the Rise?

Bitcoin Panic and Relax

Bitcoin(BTC)trade is currently is trading at around $9,500. After a formation of a double top and bearish engulfing pattern, we see a steep downfall. The price has the broken the support level of $10,800, turning it into resistance and support is at $8820. It is suggested not to take any long position at this price and to wait for the price to settle around $8,820.

Bitcoin Graph July 17

Dow Theory

According to Dow Theory, the price is in the panic phase. The digital coin usually ends up being oversold and provides good buying opportunity after the price settles down. The panic phase is followed by accumulation phase which marks the beginning of an uptrend.

Bitcoin Dow Theory July 17

Bollinger Bands

The price is moving between the channels with the lower channel limit acting as support, while the momentum is also turning negative. This indicated an increasing volatility. It is suggested not to take any long positions at this price.

Bitcoin Bollinger Bands July 17

Moving Average

When taking 9 period moving averages (blue) with 21 period moving averages (red), a bearish crossover is seen with the price moving below 9 and 21 period moving average. Risk avoiders can wait for the Bitcoin price to close above the moving average as it indicates positive momentum.

Bitcoin Moving Average July 17

Conclusion

Bitcoin(BTC)trade is currently is trading at approximately $9,500. Resistance is at $10,800 and support is at $8,820. It is suggested not to take any long position at this price and wait for it to settle down at around $8,820.

Overall, the long-term trend is positive but the short-term trend appears negative; however, long term investors can use this opportunity for buying, providing that they buy it around support. Swing trading can be done using the above-mentioned levels. Long-term target is at $12,400.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 8737.8 8913.9 9035.6 9211.7 9333.4 9509.5 9631.2
Fibonacci 8913.9 9027.7 9097.9 9211.7 9325.5 9395.7 9509.5
Camarilla 9075.5 9102.8 9130.1 9211.7 9184.7 9212.0 9239.3
Woodie’s 8710.8 8900.4 9008.6 9198.2 9306.4 9496.0 9604.2
DeMark’s 8974.8 9181.3 9272.6

Technical Indicators

Name Value Action
RSI(14) 25.811 Sell
STOCH(9,6) 51.197 Neutral
STOCHRSI(14) 1.200 Oversold
MACD(12,26) -254.600 Sell
ADX(14) 49.238 Sell
Williams %R -93.856 Oversold
CCI(14) -229.7914 Oversold
ATR(14) 150.5335 Less Volatility
Highs/Lows(14) -223.7291 Sell
Ultimate Oscillator 39.203 Sell
ROC -3.872 Sell
Bull/Bear Power(13) -598.3857 Sell
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