Bitcoin Closes Week Above $21K, Is Bullish Reversal in Sight?
The expectation of every crypto investor this month is to see some bullish trends in the market. Many top assets have recorded more pullbacks than rallies in the months following the general market crash.
Each week starts and ends with a new trend for the green or the red. This uncertainty has kept everyone guessing and fearing impending losses if the bearish trend continues. But it seems that the week that started from September 5 to 12 brought a lot of bullish moves for many cryptos.
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There were some pullbacks, but the rallies seemed to gain the upper hand as the week wore on. For example, Bitcoin closed the week above $21 after struggling to reach the $20K mark without success.
BTC price as of September 5 was $19,988 and continued to fall until it reached $19,328 at the opening of the markets on September 9. Before the market closed on the same day, BTC rose over $20 to reach $21,381.15.
Indicators of an impending bullish trend
After ending the week over $21K, Bitcoin climbed past this price level to reach $22,122.04 on Monday, September 12th. Analysts have studied other indicators of a possible bullish reversal for the number one crypto.
First, BTC’s sharp bounce in the first week of September created a long lower week indicating buying pressure. The coin price also reached a bullish close of $21,826 after maintaining a horizontal support area of $19,400 since June.
Analysts observed that BTC’s all-time high price for the week and the closing price were very close, showing that sellers could not bring the price down. This situation clearly indicates that the bulls are pushing. Also, the weekly relative strength index for BTC moved away from the all-time low region and the oversold territory.
If the price continues to push upwards, the nearest resistance area for BTC will be $29,425. This level will represent the 0.382 fib retracement resistance level for the last part of its downward movement.
Analysts predict a second resistance level at $37,300, which shows a 0.382 fib retracement resistance level for the overall downward movement from BTC’s all-time high.
Bitcoin moves on trading chart
BTC’s daily price chart shows that it is moving towards a bearish candlestick (red icon). However, currently its daily RSI is bullish as it just moved past the 50 line, its previous resistance. But BTC needs to regain the channel and the 0.5-0.618 fib retracement resistance region for the move to be considered bullish.
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Analysts have also indicated that the BTC wave number is already in the fourth wave of the five-wave uptrend that started on August 7. The move suggests that after the price corrects briefly, there will be a rise towards $22,700, which shows a 0.618 fib retracement resistance level.
Featured image from Pixabay and chart from TradingView.com
