Bitcoin starts under pressure in September after a cruel end in August. Now, all eyes are $100,000. Bitcoin closed a disappointing week for the Bulls in August. After winning a new all-time high just over $124,000 in mid-August, Bitcoin closed three red candles in a row on its weekly charts. The candles for the past week close to a low low, blowing away momentum.
The MACD oscillator also confirmed a bearish cross at the end of each week. This should help maintain the downward pressure that comes in this week. The RSI currently sits in a relatively neutral position just above the 50 line, but it’s the lowest level since mid-April.
This first week of September saw Bitcoin drop to test support levels from price integrations from May to June. The Bulls are looking for a large number of nodes, ranging from around $104,000 to keep the price, and can ideally prevent this week’s candle from falling below that level. Through this support, the Bears will attempt to return the price to the Key 1.618 Fibonacci expansion level from Bear Market in 2022 for $102,000. Closing under $102,000 this week is a very bad thing for the Bulls. This would be very bad as it threatens to test your last major swing at $98,000, below the infamous laser eye level of $100,000.
Taking $100,000 on the downside gives a lot of weight to the paper “long-term top.” $96,000 is basically the Bulls’ final line of defense, if the price can slip through all these upper support levels.
So heading into this week, look for buyers to step in and try to turn things into order at the $105,000 level. The Bulls are turning right this week on the ship and putting in some kind of inverted candle to turn things around. But for now, the bear is in full control and is about to continue selling pressure in September.
Terminology Guide:
Bulls/Bully: A buyer or investor expects prices to rise.
Bear/Bear: Sellers or investors who expect prices to drop.
Support or Support Level: At least at the beginning, the level at which the asset’s price is retained. The more touches you have in support, the more likely it will be to be weaker and will not be able to hold the price.
Resistance or Resistance Level: Opposition to support. At least at the beginning, there is a high probability of rejecting the price. The more resistance touches and the weaker the more likely it is to be unable to keep the price down.
Fibonacci retrace and extensions: Ratios based on what is known as the Golden Ratio, a universal ratio related to natural growth and collapse cycles. The golden ratio is based on the constants PHI (1.618) and PHI (0.618).
Oscillator: A technical indicator that differs over time, but usually remains within the band between set levels. Therefore, they vibrate between low levels (usually representing conditions for sale) and high levels (usually representing terms for acquisition). For example, relative strength index (RSI) and moving average convergence force (MACD).
Macd Oscillator: Moving Average Convergence Divergence is a momentum oscillator that shows motion and momentum to subtract the difference between two moving averages.
RSI Oscillator: The relative strength index is a kinetic oscillator that moves between 0 and 100. Measures the change in price speed and the speed of price movement. If the RSI is above 70, it is considered to be over-purchased. If the RSI is below 30, it is considered to be oversold.
This post Bitcoin will be closed badly in August. Now, with a look at $10,000 in support, it first appeared in Bitcoin magazine, written by Ethan Green-Feral Analysis.
