Bitcoin Price Downtrend Could Continue As Indicators Begin Pointing Down

Tony "The Bull" Severino

1 year ago

3 mins read

bitcoin price crypto indicator downtrend

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price has been chopping back and forth, up and down, since this past June when its parabolic rally was stopped short of retesting its previous all-time high.

While bears have repeatedly failed to push Bitcoin price through critical support, the crypto asset has been clearly locked in a downtrend for the last three months. That downtrend could continue, according to crypto analysts who suggest that important indicators have begun to point downward and are signaling additional downside movement in the coming days.

Important Technical Indicators Suggest Bitcoin Price to Continue to Trend Downward

Crypto analysts are torn over what type of pattern that Bitcoin price is trading inside, with some believing the price action is playing out inside a descending triangle similar to the pattern played out during the 2018 bear market, while others are saying it’s a symmetrical triangle or bull flag that could break upwards.

The one thing they all mostly have in common is the notion that many important indicators have started to turn downward, suggesting that Bitcoin price could continue to drop in the days ahead, regardless of the pattern itself.

$BTC 4hr UPDATE

I saw some falling wedges and inverse head & shoulders at other TA's today but I think they will fail both. We are in a downtrend so better stay short. Nearly all indicators pointing downwards. 3D RSI crossing down 50 first time in a while. pic.twitter.com/lTuYmOzBM6

— Crypto Walker (@cryptoWalk3r) September 11, 2019

One crypto analyst says that the 3D RSI – the relative strength index – and other key indicators have begun to turn downward, which means that the current downtrend is likely to continue lower.

The relative strength index measures the intensity of the buying or selling accompanying a price movement, and the indicator falling below 50 is a bearish signal.

Another crypto analyst points to the MACD – the moving average convergence divergence indicator – on the weekly timeframe signaling “more downside” and the daily MACD beginning to roll over.

Daily MACD rolling over. Looks like an extended period of red on the histogram is due.

Weekly MACD signaling more to the downside… pic.twitter.com/DBb356uuj5

— dave the wave🌊🌓 (@davthewave) September 11, 2019

The bullish momentum from the beginning of the year that helped take Bitcoin price out of the deepest depths of the bear market has all but fizzled out, and buyers are waiting for either a break above previous resistance at $14,000 to buy in, or are waiting for a deeper retracement to buy Bitcoin at lower prices.

Indicators may help predict changes or continuations of trends, but it’s the patterns that analysts are torn on that can help determine price targets. If Bitcoin price is indeed locked in a descending triangle, targets would be from $7,500 to as low as $5,800, however, unlikely that may seem

Symmetrical triangles can break up or down, and are typically considered continuation patterns. This would suggest a break to the upside, which would take Bitcoin price well above where the rejection in June took place, and propel the crypto asset to retest its previous all-time high at $20,000. The same heights are possible if the pattern ends up being a bull flag that breaks up.

Even a breakdown is expected to be bought up quickly, as the current bull run is among the most powerful bull markets in Bitcoin’s history, and will likely eclipse the previous crypto hype bubble.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.