Time for a breakout? Bitcoin price pushes at key resistance near $23K

Time for a breakout? Bitcoin price pushes at key resistance near K

On Sept. 12, Bitcoin is doing Bitcoin issues as normal. Since Sept. 9 the price has damaged out properly, reserving a near 16% achieve and rallying into the long-term descending trendline which seems to have resistance at $23,000. 

BTC/USDT 1-day chart. Source: TradingView

Perhaps BTC and the broader market are turning bullish forward of the Ethereum Merge which is scheduled for Sept. 14, or possibly the elusive backside is lastly in. Weekly chart knowledge from TradingView reveals that on June 27 and Aug. 15, Bitcoin’s relative power index had dropped to lows not seen since 2019.

BTC/USDT 1-day chart. Source: TradingView

Currently, the metric has rebounded from a near oversold 31 to its present 38.5 studying. Some merchants may also observe a bullish divergence on the metric, the place the RSI follows an ascending trendline whereas Bitcoin’s weekly candlesticks pattern downward. Bitcoin’s transferring common convergence divergence (MACD) has additionally crossed over as buying quantity surged and BTC price makes an attempt to interrupt from its present 90-day vary.

As identified in earlier evaluation, since Jan. 21, Bitcoin price has merely been vary buying and selling in what have turned out to be successive bear flags that see continuation to new yearly lows. Price has constantly encountered resistance at the overhead descending trendline and the price motion witnessed right this moment and prior to now 90-days isn’t a deviation from the pattern.

Traders ought to watch for BTC price to push safe a few every day closes above the trendline resistance and setting a every day greater excessive above $25,400, and even a breakout to the 200-MA at $30,000 could be a wonderful sight of both a pattern change or at least a leg as much as a new consolidation vary. Until that happens, the usual apply amongst merchants is to not go lengthy at long run resistance and wait to see whether or not the bullish momentum holds or the prevailing pattern stays intact.

Related: The Fed, the Merge and $22K BTC — 5 issues to know in Bitcoin this week

Of course, there are a handful of different on-chain and derivatives metrics which may add precious context to Bitcoin’s present price motion, however the objective of this transient evaluation is to easily present a fast, snapshot interpretation of BTC’s present market motion and take into account what merchants may be considering within the short-term.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a choice.