Bitcoin (BTC) moved in the horizontal range of $11,800 – $11,100 for most of August. Although attacks towards $12,000 were seen in this period, BTCUSDT failed to stay in the $12,000 band. As a result, over-selling occurred in the first week of September in bitcoin. In the September 7 Bitcoin weekly analysis, we evaluated the latest situation in the cryptocurrency.
Bitcoin collapsed in early September
Bitcoin, which fell sharply below $11,100 on September 3, fell to $10,000 on the same day, declining by 10 percent. The long-term downtrend, which was around $10,500 in the past week, resulted in resistance again. In addition, with the decline last week, the upward trend that started after holding $5,000 in March 2020 was also broken down.
Bitcoin Weekly Chart
The most important level of this week is the 20-week moving average (currently $9,939), which we follow on the weekly chart of BTCUSDT. When we look at the historical data, weekly closings below this average value, which is an important criterion for investors, trigger sharp declines to come. Accordingly, if bitcoin (BTC) closes the week below $9,940, the next stop is likely to be the 50-week moving average, now at $8,750. If the weekly level falls to the 50 MA level, the main support line will come to the fore as a bottom level. In the medium-term outlook, the main support trend extends towards the $6,500-7000 range.
If bitcoin (BTC) manages to hold onto the 20-week-week level this week, the $10,400 resistance will be followed as a critical price on the uptrend.
When we take a closer look at bitcoin with the daily chart of BTCUSDT, it is seen that there has been support at $9,900 for the last 4 days. This level, which was followed as resistance for a significant time in May, is serious intermediate support for this week. While daily closings over $9,900 may trigger attacks towards 10,400, after the upward break of this narrow band, $11,100 can be followed as the second rising target.
Bitcoin Daily Chart
However, the declining 20-day moving average tends to break down the 50 MA level daily. If the death cross happens, we can see the continuation of hard sales in Bitcoin this week. A possible wave of sales could start a move towards the $9,000 band in September.
7 September Bitcoin Weekly Analysis: Latest on Technical Indicators
Stochastic RSI: Below $11,400, the Stoch RSI, which turned its direction sharply south after the daily closing, is in the oversold zone in the daily view. The exit of this indicator from the oversold zone can be interpreted as the work of the $9,950 support and an upward movement may begin in bitcoin.
RSI: The relative strength index, which confirms oversold with its 34 level, has dropped to these levels for the first time since March 2020. This can be interpreted as an indicator that the decrease may reach serious dimensions.
MACD: The MACD, another indicator that depicts a sharp drop, has reached its March bearish levels.
Bitcoin Right Now…