Why the Bitcoin price below $20,000 is a bad sign for Crypto
- Bitcoin breaks through the psychological $20,000 barrier.
- An uptick in transactions persists on the Volume Profile Indicator.
- Invalidation of the bearish thesis is a breach above $27,000.
Bitcoin price could be communicating what to expect throughout the Fall as bearish signals continue to advance during the final days of August,
Bitcoin price suggests another bearish September
Bitcoin price has fallen 20% since last week's $25,211 high was briefly established. The 20% decline has led the bears successfully breach the psychological $20,000 barrier. Traders may want to consider remaining sidelined as September has produced bearish market environments for the Bitcoin price four years in a row. Bitcoin's end-of-the-month decline could hint that the 5th consecutive year is imminent.
Bitcoin price currently auctions at $19,992. Based on Binance's exchange metrics, an intense amount of transactions have come into the market on the Volume Profile Indicator. Additionally, the Relative Strength Index still has sufficient cushion space. Combined, both indicators could warrant the idea that a market bottom is not yet in place.
BTC/USDT Monthly Chart
Last week a bearish trade thesis was issued with an entry point of $23,125 and an invalidation level of $27,000. Traders who partook in the forecasted move are in profit .8X risk capital. Invalidation should remain at $27,000 to avoid any last-minute liquidity hunts before the month ends.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
