Flash Alert: Wednesday 28th August
The big move we were waiting for is materialising. You may read our previous Flash Alert dated Tuesday 27th August. This Flash Alert is a follow up that takes a closer look at the hourly BTC/USDT charts to identify key technical targets you should be aware of over the next 24 hours.
- The price of BTC/USDT rose to $10,299 earlier today before plunging to $9,601 recently. BTC/USDT was trading at $9,754.24 at the time of writing following a bounce off its earlier low;
- The rhetoric of our previous update was tilted to the bearish side, which has proved to be correct;
- To be quite frank the breaching of the $9,850 level, where the 90-day EMA coincides on the daily chart, suggests Bitcoin is likely to suffer further selling pressure from this point;
- In other words, we are even more bearish on BTC/USDT, especially over the next 24-48 hours and are eyeing $9,555 – $9,400 levels;
- If BTC/USDT breaches $9,400 will see the price descend even further to $9,165 – $9,060. If support does not re-emerge at those levels and BTC/USDT is allowed to close below the $9,000 mark then we will see further declines to $8,760 – $8,567. The latter coincides with the 180-day EMA, and we all know what is very likely to happen if that level does not hold;
- In the meantime, the Stochastic RSI (14,14,3,3) has just turned bearish on the daily chart and the MACD (12,26,9) has turned bearish as well;
- Despite today’s move in BTC/USDT, the bullish uptrend remains intact (at least for now);
- With the Bitcoin halving expected in May 2020, it is possible for BTC/USDT to find a bottom sometime around October – November 2019, and by then hopefully not breach the 180-day EMA – the level that would flip the bullish uptrend into a full blown blood bath;
- Historically, we have observed that it was great time to buy Bitcoin around 6 months before the halving date – which is not too far away. Read our observation for Litecoin and Bitcoin here;
- A follow up post to this Flash Alert may be found here.