Analysis: Bitcoin Price Expects to Rise on Monday

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The price of bitcoin has gone down by 8.27 percent in the previous twenty-four hours, according to data provided CoinStats’ crypto portfolio tracker.

The BTC/USD instrument on Monday fell as low as $10,866.9 during the early Asian session. The pair later attempted a small upside recovery but that, too, came on low volumes. The move showed sluggishness on the part of bulls, indicating that a near-term scenario for bitcoin was on the way downwards.

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Bitcoin Price Dropped 14.82% Over the Weekend | Source: CoinStats’ Cryptocurrency Portfolio Management App

The intraday loss reduced bitcoin’s weekly gains to 4.07 percent from a double-digit percentage noted until Wednesday. Eventually, the cryptocurrency’s market capitalization also came down to $198 billion from the weekly top of $245 billion.

Bitcoin Technical Analysis

As of late, the bitcoin price is trending inside a bear pennant, as shown in the chart below.

Bitcoin Price Testing Pennant Support for a Rebound | Source: Coinbase

The price has just tested the support of the pennant formation. A rebound is underway, which could see bitcoin retest the local top of $11,425 either today or tomorrow. An improved buying scenario could lead the price towards the upper trendline of the pennant formation – the resistance. Upon testing it, bitcoin could attempt another pullback, this time to the downside.

The movements inside the pennant could provide decent intraday trading opportunities for traders. On a rebound from support, one could place a Long target towards $11,425 or beyond, depending on their appetite for risk. Similarly, a pullback from resistance could provide an equally profitable short opportunity towards the support.

While one places their trades, it is also advisable to maintain a risk profile. That said, a stop loss 1-pips above the resistance would protect a short position and a similar position below the support would protect a long entry.

This is not an investment advice.

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