Bitcoin dip ahead: $9500 is the price to watch

15 Jul, 2019
by Lourens Pepler
Price Analysis
Bitcoin dip ahead: $9500 is the price to watch

Bitcoin is down 20% this weekend and back at $10000. With the overall momentum still being bearish, we today look at what levels we can expect support from and to see where we might expect a reversal for this down trend. Thus far it appears that Bitcoin may have at least another dip ahead, with $9500 potentially next on the agenda. This is the BTC analysis for 15 July 2019.

Highlights:

- 20% decline over the weekend

- Momentum still overall bearish

- One more dip for today to create divergence

- $9500 target

If we start off with a 15min chart and looking at price, we can see that BTC is currently in the middle of its downward trend channel. Since price is coming from the bottom trend line, we will assume that the middle of the channel is now resistance. 

You can see that when price what in the upper half of the channel, that the middle line acted as support for the downtrend. Therefore we now turn it into resistance, since the price is in the bottom half of the channel.

BTC/USD chart provided by Tradingview

Now moving over to momentum on RSI, we can see that it is also currently at resistance. As we know, during a downtrend, 50 RSI acts as resistance for momentum. You can see that the overall trend for momentum is downwards, therefore any overextension in momentum is bound to return back to trend.

With momentum and price at resistance, indicates that we can expect another dip for BTC. Since RSI has already had a proper low of 19 on the previous dip and is currently hovering near 50, it could indicate that the next dip would form divergence, as price makes a lower low, but RSI makes a higher low.

BTC/USD chart provided by Tradingview

For us to see what levels this next dip might reach, we have to move over to the daily chart. What we now see is that BTC is almost near the uptrend line at $9500. Looking a bit back, we can also see that this price point was minor resistance back in the middle of June.

BTC/USD chart provided by Tradingview

$9500 will be our target for today as momentum and the price falls to create divergence. Resistance is nearby at $10400 since momentum is currently pressing against resistance.

Do you think BTC will continue to fall, or can we see it hold some support near $9500? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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