Traders are watching closely as the price of BTC sinks into long-term trendline resistance that has previously capped previous rallies.
September 12 Bitcoin (BTC) works as usual. Since September 9, the price has made a good breakout, posting an increase of almost 16% and recovering to a long-term downtrend line that appears to have resistance at $23,000.
1-day BTC/USDT chart. Source: Trading View
Perhaps BTC and the broader market will become bullish ahead of the Ethereum merge scheduled for September 14, or perhaps the elusive bottom has finally been reached. Weekly chart data from TradingView shows that on June 27 and August 15, the Bitcoin Relative Strength Index fell to lows not seen since 2019.
1-day BTC/USDT chart. Source: Trading View
The metric has now recovered from a nearly oversold value of 31 to the current level of 38.5. Some traders may also see a bullish divergence on the metric where the RSI is following an uptrend line while Bitcoin’s weekly candles are sloping down. The convergence-divergence of the Bitcoin Moving Averages (MACD) has also been broken as buying volume soared and BTC price attempted to break out of its current 90-day range.
As detailed in the previous analysis, the price of bitcoin has simply been in a range since January 21, which has manifested itself in the form of consecutive bear flags that see new yearly lows continue. The price has consistently encountered resistance at the upper downtrend line, and the price action seen today and over the past 90 days is not a deviation from the trend.
Traders should watch for the price of BTC to safely rise above trend line resistance for several daily closes, and setting a daily high above $25,400 or even a break to the 200-MA at $30,000 would be a great sign of a trend reversal or, according to at least a step. to a new area of consolidation. Until then, the usual practice among traders is not to bet long-term on long-term resistance, but to wait and see if the bullish momentum continues or the prevailing trend remains intact.
Related: Fed, merger and $22,000 BTC – 5 things to know about bitcoin this week
Of course, there are several other on-chain and derivatives metrics that can add valuable context to Bitcoin’s current price action, but the purpose of this brief analysis is simply to provide a quick snapshot of BTC’s current market behavior and reflect what traders might be thinking in the short term. .
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
