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Monday, September 18, 2023

Bitcoin: a “dead cross” !

Bitcoin: a “dead cross” !

Bitcoin / U.S. dollar BITSTAMP:BTCUSD

Previous week was a sort of short reversal point on the crypto market, but mostly only for Bitcoin. Investors are perceiving that interest rates in both the EU and the US have peaked, which brought back some of interest for riskier assets. This was one of the major reasons for BTC`s reversal during the previous week to the levels above $26K. Whether BTC will be able to sustain these levels is to be seen. In a week ahead, a FOMC meeting is scheduled, which might bring back some higher volatility on all markets, including crypto. It should also be considered that the SEC postponed its decision on the first spot BTC ETF for October. Both positive or negative outcome of SEC`s decision will have impact on BTC`s price, positive or negative.

BTC started the previous week by testing a 25K support line. This level has been sustainable since mid-August, which could be treated as sort of positive for BTC. It should also be taken into account significantly decreased daily trading volumes, which makes it hard to make any higher move in price during this period. During the week BTC`s price reached its highest weekly level at $26.870, from where a modest reversal started during weekend trading. RSI continues to struggle to break the level of 50 and clearly head toward the overbought side. The most significant development during the week was a formation of a so-called “dead cross” where the MA50 line crossed from the upper side the MA200. It is still early in time to fully confirm the cross which was just formed, however, even a potential for such a development should be a signal for precaution for traders and investors. Namely a “dead cross” formation is the first indication of potential change of a trend to the downside. Whether this would be a future outcome for the BTC price is to be seen.

Looking at current charts, a move from the 25K support line could lead BTC toward a short term resistance line at $28K. However, with decreased daily trading volumes such a move might be questionable for the week ahead. On the other hand, a short move back toward levels above the 25K is also probable in the week ahead.



source https://www.tradingview.com/chart/BTCUSD/xHLH1YYy-Bitcoin-a-dead-cross/

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