Posted 10 hours ago
The Bitcoin technical chart presented a rollercoaster ride as prices reversed from the V-top in mid-August and returned to the 2022 lower support of $18,000. Additionally, over the past few weeks, the crypto market has suffered due to unfavorable news such as high CPI data, rising Fed interest rates, and rising US Dollar Index (DXY ) to a 20-year high. As a result, market participants’ fear of another fall has increased.
Key Points of Bitcoin Price Analysis:
- The Bitcoin Fear & Greed Index fell 24%, signaling extreme fear among market participants.
- Interested traders should wait for Bitcoin price to break through the triangle barriers before positioning their funds.
- Bitcoin’s intraday trading volume is $22.6 billion, indicating a 35% loss.
Bitcoin retested the lower support zone at $18,200-18,000 on September 19. However, even a week has almost passed, the price of BTC is still hovering around this support. This consolidation indicates uncertainty among market players.
Either way, the 4-hour chart reflects this consolidation as a symmetrical triangle pattern forms. In theory, this pattern usually resumes the prevailing trend after a short period of pause; however, an escape to the other side is entirely possible.
Today, Bitcoin price is trading at $19062 and showing an intraday gain of 0.7. Additionally, the two converging trendlines have narrowed prices enough to be considered a no-trade zone.
Therefore, a breakdown below the support trendline will intensify the ongoing downtrend and plunge Bitcoin price below the $18,000 mark.
On the contrary, a candle closing above the resistance trendline will signal an early sign of a bullish reversal. As a result, coin holders might witness another recovery.
IRS: Unlike sideways price action, the rising slope of the RSI indicates growth in the underlying uptrend. Additionally, this positive divergence encourages a bullish breakout of the triangle pattern.
EMA: the crucial descending EMAs (20, 50, 100 and 200) indicate that any potential rally would face multiple resistance on its way up.
- Resistance level – $19600 and $20600
- Support level – $18,000 and $16,500
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.