Published 3 hours ago
A perpendicular growth in Bitcoin price after rebounding from $18780 support indicates a high demand pressure at this level. In addition, the coin price challenges a local resistance of $21800 barriers suggesting another breakout opportunity for traders. However, the volume activity is yet to support this theory, and its decreased value could induce countermeasures.
Key points from Bitcoin price analysis:
- The Weekly BTC/USDT chart forms a morning star candle at $18780 support.
- Bitcoin’s Fear & Greed Index at 26% reflects a fear among market participants
- The intraday trading volume in Bitcoin is $34.6 Billion, indicating a 10.5% loss.
Source-Tradingview
The recent correction in the crypto market entirely evaporates the July-August gains and plunges the Bitcoin price to the bottom support of $18750. Thus, the traders reacted to this high accumulation zone and rebounded the price immediately.
The replenished bullish momentum surged the price for four consecutive days, registering a 16% rally. The strong surge volume activity during this rally accentuates the traders are pretty interested in this discounted price.
The bull run took out a minor resistance level of $20750 and hit another at $21800. The coin price currently trades at $21635 with a 0.1% loss in intraday. However, although price action shows no rejection candle and decreased volume hints, the bullish momentum has been exhausted with the sudden rally.
Thus, the bitcoin price may witness a minor pullback before it could surpass $21800 and hits $22630. However, under a favorable scenario, a breakout from this resistance would undermine the August second-half correction and bolster the price to reach the $25000 mark.
On a contrary note, the Bitcoin price is still under bearish threat as the US Fed had suggested under the interest hike in September.
Technical Indicator
On balance volume(OBV): an upswing in the daily-OBV slope encourages the growing interest of traders for long positions in Bitcoin.
EMAs: The recent bull run reclaims 20-and-50 EMAs, offering an extra edge on long positions.
MACD indicator: A bullish crossover between the fast and slow lines gives a buy signal to bolster the ongoing recovery. Moreover, the rising green on the histogram chart highlights sustained buying from traders.
- Resistance level- $21800 and $22630
- Support level- $20750 and $18780
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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