Bitcoin (BTC), after retesting range lows and closing the week above an important area, prevented a break down to lower levels. Market watchers believe that the reclaiming of the range highs will lead to another upswing, while an analyst warns about potential volatility.
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Bitcoin holds crucial weekly support
Since the beginning of August, Bitcoin’s price has remained in its range, between $108,250 and $111,140. Since the second half August, the cryptocurrency has displayed mixed signals. It failed to maintain the $109,000 crucial level in the last week.
Analyst Rekt Capital asserted BTC showed “early signs of weakness,” It could be a sign of bearishness if this important level is not held in the week-long timeframe.
But the crypto flagship is. surged Closed the week around $111137. Averting a potential short-term breakdown.
“Bitcoin indeed didn’t fully confirm the breakdown; instead, price has reclaimed the $109k level as support and is now trying to rally higher in an effort to check if $114k has turned into new resistance after being lost as support a few weeks ago,” Analyst noted
Rekt Capital says that BTC is likely to retest the level of resistance due to an inverted Head and Shoulders formation on a daily timeframe. This pattern has the $113,000 region as its neckline.
Bitcoin could see a retest in this area after a breakout, if it closes the day above that level. It would then fuel an uptrend towards the important weekly resistance. Ali Martinez also affirmed Breaking past $113,000 will set the cryptocurrency “on track for $116,000 and possibly $119,000.”
BTC’s New Key Pivot:
Rekt Capital has highlighted the fact that there is a new daily close This level is considered the upper limit. “also confirm that the price is going to occupy the upper half of the Daily Bollinger Bands,” The middle band is around $112,000, which makes it the most expensive.
“Turning the mid-point (orange) of the BBands into support tends to set price up for a move to the very top of the Upper Band, which happens to be around the $116k level,” He noted that the upper band corresponds to the Monthly Range High level of resistance.
BTC’s price has recently been bouncing off the lows of the Macro Monthly range. The price of BTC has increased as a result. “is now ready to try and challenge the Range High over time.”
Bitcoin has to finish the week over $114,000 before it can retest its macro range’s high. build A base for the potential third Price Discovery Uptrend. “It’s all about $114k going forward as a key pivot point for price,” He concluded.
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BTC, for example, attempted to breach a critical area Tuesday morning. It reached $113,000, before retreating back down to $110,000. Ted Pillows, however, remained unaffected. warned On September 11, the US CPI will release its data. This could cause some cryptocurrency volatility.
He said that the CPI figures for the three most recent months resulted in BTC’s price dropping by 9%-11%, August being the biggest drop in the past couple of months. Bitcoin could reach $100,000 in price if a similar correction occurs. This is the first time since June that Bitcoin has seen this level.
BTC is currently trading at $111 276. This represents a daily decline of 1%.
Charts from TradingView.com and Unsplash.com.
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Source: www.newsbtc.com
