Bitcoin has been making its typical moves on Sept. 12. Starting from Sept. 9, the price has been performing well, marking a nearly 16% increase and moving towards the long-term downtrend line where resistance is seen near $23,000.
It could be that Bitcoin and the broader market are becoming more bullish in anticipation of the Ethereum Merge scheduled for Sept. 14, or it might signal that the bottom is finally forming. Data from TradingView’s weekly chart indicates that on June 27 and Aug. 15, Bitcoin’s relative strength index hit lows not witnessed since 2019.
At present, the metric has recovered from being nearly oversold at 31 to the current reading of 38.5. Some traders also observe a bullish divergence on the metric, with the RSI following an upward trendline while Bitcoin’s weekly candlesticks trend downward. Moreover, Bitcoin’s moving average convergence divergence (MACD) has crossed over as buying volume surges and the BTC price aims to break out of the 90-day range.
As noted in previous analyses, since Jan. 21, the Bitcoin price has been trading within a range, forming consecutive bear flags that continue to new lows each time. The price has consistently met resistance at the descending trendline overhead, and the recent price action over the last 90 days is consistent with this trend.
Traders should monitor Bitcoin’s price to confirm a few daily closures above the trendline resistance and achieve a daily higher high above $25,400, or even a breakthrough to the 200-day moving average at $30,000, indicating a potential change in trend or at least a move towards a new consolidation range. Until this happens, traders typically refrain from going long at long-term resistance and instead wait to see if the bullish momentum remains or if the current trend persists.
While there are several other on-chain and derivative metrics that could provide additional insights into Bitcoin’s current price movement, the goal of this brief analysis is to offer a quick interpretation of Bitcoin’s current market behavior and consider potential short-term trader sentiments.
The opinions and views expressed here are solely those of the author and do not necessarily represent the perspectives of Cointelegraph.com. Every investment or trading decision involves risk, so it is advisable to conduct your own research before making any decisions.
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