Time for a breakout? Bitcoin price is pushing key resistance near $23K
On September 12th, Bitcoin will do Bitcoin things as usual. Since September 9, the price has broken out well, posting a gain of nearly 16% and entering the long-term descending trend line that appears to have resistance at $23,000.
Perhaps BTC and the broader market will turn bullish ahead of the Ethereum merger scheduled for September 14, or perhaps the elusive bottom is finally in. Weekly chart data from TradingView shows that on June 27 and August 15, Bitcoin’s relative strength index had fallen to lowest levels not seen since 2019.
Currently, the metric has retreated from an almost oversold 31 to the current 38.5. Some traders may also notice a bullish divergence on the metric, with the RSI following a rising trendline while Bitcoin’s weekly candlesticks are trending down. Bitcoin’s moving average convergence divergence (MACD) has also crossed over as buying volume increased and BTC price attempts to break from the current 90-day range.
As pointed out in previous analysis, since January 21st, the Bitcoin price has simply been range trading in what have turned out to be consecutive bear flags continuing to new yearly lows. Price has consistently met resistance at the descending trendline overhead, and the price action we have seen today and over the past 90 days is not a deviation from the trend.
Traders should look for the BTC price to push secure a few daily bars above the trendline resistance and set a daily higher high above $25,400, or even a breakout to the 200-MA at $30,000 would be an excellent view of either a trend change or at least a leg up to a new area of ​​consolidation. Until that happens, the standard practice among traders is to not go long with long-term resistance and wait to see if the bullish momentum holds or the prevailing trend remains intact.
Related: Fed, Merge and $22K BTC – 5 things to know in Bitcoin this week
Of course, there are a handful of other on-chain assets and derivatives that can add valuable context to Bitcoin’s current price action, but the purpose of this brief analysis is simply to provide a quick, snapshot interpretation of BTC’s current market action and consider what traders may be thinking in the near term .
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
