Although a short term downward trend has become more than clear, BTC has been holding on to the nearby $10,000 support zone. This has generated some positive expectation, expecting a Bitcoin rally in the form of a retracement, which will most likely influence the entire crypto market.
Because of Bitcoin’s strong dominance over the ecosystem in general, it’s useful to analyze its price chart to get an overview.
Analysis of the largest crypto market: Bitcoin
In the weekly time frame of the BTC vs. USDT chart a strong uptrend is still maintained in the medium term.
The drop we are witnessing can still be categorized as a setback before looking for new yearly highs.
The 8-week EMA and 18-week SMA moving averages are crossed upwards.
These averages are currently being visited. If they are respected as dynamic supports it would be a good bullish sign, as it would be marking the beginning of a new momentum.
Otherwise, a break of these would be a quite negative sign, which could be marking the beginning of the search for at least the $9,200 support.
At the moment the most likely scenario is a bullish one, but there are still not too many confirmations in minor time frames that indicate that this will start soon.
From the daily chart it’s clear that the short term downward trend of the Bitcoin Billionaire price, reaffirmed last September 3rd when it lost 12% in a single day, dragging with it the whole market crypto.
After this, BTC managed to get support in a demand zone near the $10,000 mark, and to this day it remains above it, which continues to maintain the expectation of a higher rise.
The 8-day EMA and 18-day SMA moving averages are crossed downwards following the short term trend, and have not yet been visited as dynamic resistances, which supports the view of a deeper rally.
Support at $11,200 was broken on September 3, and the price went out without a test run before continuing downward. It is likely that this level will now work as a resistance in the reversal that seems to be still developing.
The 200-day SMA is still bullish, supporting the strong BTC gains collected over the last few months.