Bitcoin price seems to be on the downside but this could offer trading opportunities in altcoins like MATIC, ATOM, and CHZ. US stock markets plummeted on August 26th after Powell’s speech in which he restated the aggressive stance of the central bank to fight an inflationary environment. Bitcoin (BTC) and crypto markets continued their correlation with the stock market and also saw a sharp sell-off on August 26th. The flagship crypto is down by 14% this month. The volume is down by around 4.6% and the dominance of BTC is at 39.7%.
At the time of writing, BTC was trading at $19,812.
Bitcoin witnessed a sharp correction and the prices fell almost 22% from the recent high of $25,211 to $19,520. On a daily time frame, the asset was trading in an ‘Ascending Channel’ pattern, it resisted at the upper trendline of the channel and finally gave a breakout on the downside this weekend. BTC has support at $18,500, if it breaks the support then the prices can further drop and test the previous bottom of $17,622 whereas $20,500 will act as a strong resistance. Downsloping Moving Averages and RSI below 50 indicate a bearish stance for the asset.
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