Bitcoin Price Uncertainty and Outlook for the Current Week
Date: 2023-09-25 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Analysis of Bitcoin's (BTC) State at the Beginning of September
Recent events in the cryptocurrency market, particularly concerning Bitcoin (BTC), have investors and traders cautiously monitoring its dynamics. As of the beginning of September 2023, Bitcoin has lost its September gains and finds itself in an uncertain situation. Let's examine the key points and possible scenarios for this week.
Bitcoin's Status on the Weekly Chart
Two weeks ago, Bitcoin (BTC) displayed a bullish candle, sparking optimism among investors. However, last week, it failed to replicate that success. The price of Bitcoin did not solidify the rebound and cast doubt on the possibility of reversing the trend that began two weeks ago.
To confirm the bullish trend, it is necessary to overcome the descending resistance line on the daily chart. This has become a crucial point for investors monitoring Bitcoin's movement.
Weekly Chart: Bullish Divergence and Key Support Zone
Technical analysis on the weekly Bitcoin chart reveals interesting aspects. Two weeks ago, the BTC price rebounded significantly, stress-testing the horizontal area around $24,800. This zone holds particular significance as it has acted as both resistance and support since July 2022. As long as the price remains above this zone, the decline can be seen as a retest of this area to confirm its role as support.
However, last week, Bitcoin failed to sustain its rise. After reaching a local high of $27,486, the price formed a long upper wick and exhibited a bearish close. This suggests that bulls were unable to extend the upward movement.
Weekly RSI and the Bullish Trend
The weekly Relative Strength Index (RSI) of Bitcoin demonstrates indecision. Currently, it sits slightly below the 50 line but still above the trendline of the bullish divergence that began in July 2022. This divergence acted as a catalyst for the current upward movement. Therefore, the trend can be considered bullish until the trendline is breached.
Technical Analysis of the Daily Chart
On the daily chart, technical analysis also provides mixed signals. On the one hand, the price has recovered above the horizontal area at $25,600 after a dip below it on September 11. This can be interpreted as a positive signal, indicating support at this level.
