Sep 11, 2020 13:56 UTC
Sep 11, 2020 at 13:56 UTC
Cryptocurrency Price Analysis: BITCOIN
10th September 2020
Bitcoin faced a massive decline over the past week, but the asset stands firmly on the $10,000 psychological support. The largest cryptocurrency is experiencing it’s worst performing month with an average return falling to -7%, However, experts believe that a high volatility will explode the largest crypto asset above this worst performing scenario. By the time of writing, the asset is trading at $10,410 a sign showing that the bulls are buckling up after being snubbed off since the beginning of this month.
SHORT TERM PRICE PREDICTION: BTC/USD
(Source: Source Link)
Examining from the Technical levels, the Relative Strength Index (RSI) a momentum oscillator (Check: Source Link) currently holds up at 42% facing upwards after the measure struggled to point above 40% over the past week. The indicator hit a 33% low for the first time since March on last Thursday, as the price hit a $10,005 low while facing a $11,474 weekly high for the same. The measure is heading sidewards as the consequence of indecision in the Market, however currently suggesting a slight push from the buying side.
Another indicator measuring the market condition, is pointing the asset moving to a correction face after experiencing oversold situation over the past week.
Bitcoin can be seen trading below the lower band when the price dropped 10.73% last Thursday, closing at $10,172.Since then, the asset has been heading at a oversold condition until experiencing a recovery yesterday when the price closed at $10,224 above the lower band.
Both the indicators seems to be signalling an upward run for a short time.
Moving Forward, Moving Average Convergence Divergence (MACD) ( check: Source Link) another momentum trend generating oscillator can be seen signalizing an incoming price correction as the measure stands at -127.28 and can be said to be recovering after a huge bearish stroke faced last week.
The measure faced a -203.20 drop for the first time since March, last Sunday, even though when the day closed in the favour of the bulls. This further supports a slight push from the buying side with a view to tackle the high selling pressure.
Furthermore, the divergence between the price and Shorter EMA (EMA 26)
(check: Source Link)
has been moving in a direction opposite to anticipated by the bulls, which is expected to overturn in the coming days.
On the contrary, it can be noted that the shorter EMA (EMA-26) was close in crossing below the longer (EMA-50) even though when the asset showed a 1% improvement closing at $10,224 yesterday. A drop below the longer EMA usually suggests the market heading towards a bearish run.
Key Support: $9987, $9755, $9465
Key Resistance: $10,677, 10,978, $11,402
Incorporating the above, it can be said that Bitcoin needs to hold above $9987 ($10,000) support in order to avoid further bearish momentum and keep moving between $10,500-$10,000 range bound to touch $10,677 resistance, below that support lies at $9755 to the next $9465 before regaining momentum again.
More Short Term Reference: