Bitcoin begins September under pressure after a brutal August close — now all eyes are on $100K. Bitcoin ended August on a downbeat note for bulls. Bitcoin has now closed three consecutive red candles on its weekly chart after hitting a new high of just above $124,000 in mid-August. Last week, the candle was close to its lowest point. Its momentum has clearly been swung in favor of the bears.
You can also find out more about the following: MACD oscillator The weekly close also confirmed the bearish cross, and this should continue to maintain downward pressure into this week. RSI now sits in a fairly neutral position, above the 50-line but its lowest since mid-April.
In the first week of the month, bitcoin will test support levels that were established during the price consolidation from May to June. The bulls are looking to the $104,000-105,000 high volume node as a support level. They will also try and prevent this week’s candle closing below that price. The bears are trying to drive the price back down to $102,000, the pivotal 1.618 Fibonacci level of the bear market in 2022. It would be bad news for bulls if the price closed this week at or below $102k. This would put the market in danger of breaking through the laser-eyes level $100,000, and testing the last swing low $98,000.
Taking $100,000 out on the downside gives a great deal of weight to that “long-term top is in” thesis. The bulls are basically at their last defense if the price slips through the upper levels of support.
In the coming week, buyers will be looking to get in at this level of $105,000 to turn around things. The bulls are looking to correct the course this week by putting in a reversal candles to change things. For now, however, it is the bears who are fully in control. They will continue to sell into September.
Terminology Guide:
Bulls/Bullish: Expecting the price to increase.
Bears/Bearish: Expecting the price of the stock to fall.
Support or level of support: The initial price level that the asset should be priced at. Support gets weaker as it comes into contact with more of the support. This makes it more likely that the price will not be held.
The level of resistance or the degree of resistance: The opposite of support. This is the level that will likely reject the price at first. As resistance is touched more, it becomes weaker and less likely to be able to resist the price.
Fibonacci Retracements And Extensions These ratios are based on the so-called golden ratio. This is an universal ratio that relates to cycles of growth and decay in nature. Golden ratio is determined by the constants Phi (1.618) and phi (0.618)
Oscillators: Technical indicators are those that change over time but usually remain in a range between two levels. They oscillate, therefore, between low levels (which typically represent oversold situations) and high levels (which usually indicate overbought circumstances). E.G. Relative Strength Index (RSI) and Moving Average Convergence-Divergence (MACD).
MACD Oscillator: Moving Average Convergence-Divergence is a momentum oscillator that subtracts the difference between 2 moving averages to indicate trend as well as momentum.
RSI Oscillator – The Relative Strength Index oscillates between 0 and 100%. The relative strength index measures both the rate of price movement and the changes to the pace of price movements. When RSI exceeds 70, the indicator is considered as overbought. When RSI drops below 30, it’s considered an oversold condition.
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Source: bitcoinmagazine.com
