The cryptocurrency trader and analyst Ali revealed in a tweet yesterday that Bitcoin (BTC) needs to close a weekly candle above $31,700 to avoid further downfall. In the post, he mentioned that the Parabolic SAR on the market leader’s weekly chart is above the cryptocurrency’s price, which is a potentially bearish signal indicating a downtrend.
#Bitcoin | The Parabolic SAR has moved above $BTC price on the weekly chart. This is often interpreted as a potential bearish signal, indicating a downtrend.
Based on this indicator, #BTC must close above $31,700 to signal a bullish trend reversal. pic.twitter.com/g8MgsyyUkv
— Ali (@ali_charts) August 19, 2023
From a price perspective, BTC was changing hands at $26,063.76 at press time according to CoinMarketCap. This was after the cryptocurrency achieved a 0.83% gain over the past 24 hours. Despite the positive daily performance, BTC’s weekly performance remained in the red zone at -11.28%.
Daily chart for BTC/USDT (Source: TradingView)
Looking at the daily chart for BTC//USDT, BTC’s price printed another higher low yesterday. Nevertheless, the leading cryptocurrency’s price still traded below the lower level of the Bollinger Bands (BBANDS) indicator.
This suggests that BTC’s price may continue its steady ascent during the beginning of the week as it will most likely attempt to recover to within the technical indicator’s range. Furthermore, the Relative Strength Index (RSI) indicator was in extreme oversold territory – signaling a potential opportunity zone for a long position.
If this bullish thesis plays out, then BTC may rise to above $26,915 in the upcoming couple of days. A daily close above this price point will then most likely be followed by a retest of the next major resistance level at $28,295.38 in the following week – potentially clearing a path to $30K for the market leader.
On the other hand, BTC falling to close a daily candle above $29,915 before this coming Wednesday will put the cryptocurrency at risk of testing the next crucial support level. In this scenario, BTC’s price could drop to as low as $24,200 in the coming 2 weeks.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
