BTC Technical Analysis (Sept 1 — Sept 8)
Bitcoin price was trading at a weekly gain of 6%. The price has been on a decent recovery, after bottoming out late August down at $9500. BTC/USD price action is moving within a narrowing triangular structure, moving closer towards a breakout. It looks ready to launch the next leg of the up-move. Bitcoin has sustained above the moving averages for the past three days, which shows that bulls have continued their purchases at higher levels in anticipation of a rally. The 20-day EMA has started to slope up and RSI has jumped into positive territory, which shows a slight advantage to bulls. If bulls can propel the BTC/USD pair above the downtrend line of the symmetrical triangle, it is likely to resume its uptrend. The bulls need to break down supply running from $10,500–11,000 range to stabilize the markets. Bitcoin ( BTCUSD ) is showing a low volume bounce while trying to break slowly above EMA10.
There was a steady rise in bitcoin price above the $10,500 resistance against the US Dollar.
The price is currently correcting lower after it traded to a new monthly high close to $11,000.
There is an important bullish trend line forming with support near $10,200 on the 4-hours chart of the BTC/USD pair. There could be a downside correction towards the $10,100 support area before a fresh increase. The BTC/USD pair remained well and managed to surpass the $10,000 resistance. Moreover, there was a break above the $10,500 resistance and the 100 simple moving average (4-hours). Finally, the price climbed above the $10,800 level and traded close to the $11,000 level.
Finally, there was a break below the $10,400 level. However, the price stayed above the $10,000 support and the 100 SMA.
A swing high was formed near $10,949 before the price started a downside correction. There was a sharp decline below the $10,800 and $10,500 support levels.
Additionally, the price is trading nicely above the 50% Fib retracement level of the last wave from the $9,300 low to $10,949 high. There is also a key bullish trend line forming with support near $10,200 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line support, there could be a sharp decline below $10,000 in the near term.
It’s clear that Bitcoin has been in a tight trading range between $13,000 and $9,000, with $10,000 acting as critical support, however, analysts are divided as to the shape of the technical analysis chart pattern that price action has formed.
Pressure remains very much to the south, as the price has been falling for the past three sessions in a row. $12,000 rejection last week was the entry for the bears. The next major area of demand can be observed at $10,00–9000 range. The initial resistance is near the $10,600 level which broke on the upside. If there is an upside break above $10,600, the price could travel to the next $10,800 resistance. Finally, a close above the $11,000 level may perhaps set the pace for a larger upward move towards the $11,700 level.
4 hours MACD — The MACD for BTC/USD is about to move back into the bullish zone.
4 hours RSI (Relative Strength Index) — The RSI for BTC/USD is slowly rising towards the 55 level.
However, 2 days ago, A swing low was formed near $10,400 and the price started a fresh increase. It broke the $10,600 resistance then also to move back into a positive zone. Conversely, if the price fails to break the $10,800 and $10,880 resistance levels, it could correct lower. An immediate support is near the $10,600 level. For the last 3 days in this week, the 10,600 and 10,800 range is holding the Bitcoin’s price together.
Adding to this, this was an unusual weel for the crypto markets. For the first time in seeming months, altcoins dramatically outperformed Bitcoin — managing to gain multiple percent on the market leader. While Bitcoin has gained 2.5% over the past 24 hours, leading altcoins, including everything from Ethereum and EOS to Monero and Chainlink, have rallied higher by some 7% or 9%, and even further in some cases. With this being one of the first trading sessions in a blue moon that altcoins have managed to outpace the market leader, In other words, the Bitcoin price is seemingly doing exactly what gold did back in 2012 to 2013, which was its peak in the wake of the Great Recession. But let’s not forget, Bitcoin is not gold, neither is showing any at the time of the current currency war. But while the technicals are pointing towards downward price action, fundamentals suggest that demand for Bitcoin should only be growing, potentially puting it on a flight for long term investors.
Other Weekly updates:
- This week, Bakkt finally launched its Bitcoin custody product, giving institutions a way to securely store their BTC via the new platform.
- Speaking of central banks, an official of the People’s Bank of China purportedly stated that the new centralized crypto will be supported across major e-payments platforms, including WeChat Pay and Alipay
- This week, Binance revealed that it would be launching its own flagship stablecoin, Binance USD (BUSD), which is slated to be pegged 1:1 to the U.S. dollar.
- On Monday, PricewaterhouseCoopers (PWC) — one of the “Big Four” companies — revealed that one of its regional divisions, Luxembourg, will be accepting payments made in Bitcoin
Below shows the next 3 support and resistance levels for the upcoming week.