The Bitcoin long term trend is clearly bullish as the price continues to produce higher highs and higher lows…
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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BTC/USD symbol on the MT4 platform
Key support levels: 10132, 9820
Key resistance levels: 10435, 10970
The Bitcoin long term trend is clearly bullish as the price continues to produce higher highs and higher lows. Therefore, the probability remains in favor of the uptrend continuation and perhaps this month BTC/USD has reached the bottom of the current downside correction.
Fibonacci applied to the last upside move shows, that on September 9, Bitcoin has cleanly rejected the 61.8% retracement level at 9820 after which the price has moved up and tested the previous area of support near 11000, which acted as the resistance. The most recent downside move was stopped by 88.6% Fibonacci retracement level, suggesting yet another wave to the upside.
As long as the daily closing price remains above the 9820 support, Bitcoin is expected to move up towards the 50% Fibs at 10970, which corresponds to the simple downtrend trendline.
However, on the hourly chart, the 50 Simple and Exponential Moving Average was rejected, which means that there is strong resistance at 10435. In order for the BTC/USD to continue rising, there must be a break and close above this level. When/if this occurs, buying pressure is likely to increase, although there could be yet another downside pullback.