- Bitcoin price drops by 0.4 percent at time of writing
- Steady bullish momentum expected to break $11,000 resistance level
- Bollinger Bands indicate steady progression towards higher Bollinger band level
- BTC market between 08:35 – 09:35 GMT shows 18 percent retracement level
- Steady ascending trendline continues, despite bearish indications
Bitcoin (BTC) opened the markets today at $10,950, which is currently the high of the day. This was followed by a drop in the market price, with the crypto losing 0.4 percent in value at the time of writing.
BTC/USD daily chart analysis
Bitcoin has been stable through July, bullish through August and has saw a sudden bearish drop on the 3rd September. On the daily chart, prices show some level of support in early September and an ascending trendline.
BTC price is seeing continual upside momentum as it steadily hikes its way to $11,000. After the fall from grace on the 3rd, Bitcoin continues through September toward breaking the $11,000 mark, and potentially beginning the Mount Everest of climbs back to $12,000.
Technical indicators on the daily charts also show continued steady bullish movement, with Bollinger Bands (BBs) showing an ascension toward the higher $11,878 BB value. Despite these depictions, the BBs basis point today is $10,738, lower than yesterday’s BB basis point.
The MACD indicator shows BTC price proceeding towards October in a bearish state, but the ascending trendline indicates otherwise. Despite the MACD indicator showing bearish movement, overall BTC activity portrays bullish momentum throughout the middle of September.
Intraday BTC trading on the 5-minute chart
The five minute chart shows that since the market opened in the last hour, the market has been following a strong resistance as it journeys toward $11,000. Just after 09:00 GMT, Bitcoin saw a drop from $10,905 down to $10,865 – a 0.2 percent drop – only to begin bullish movement once again.
Using Fibonacci retracement, this five minute chart indicates that prices are currently at a retracement level of around 18 percent since 08:35 GMT. As the prices for the intraday progress, it’s suggestive that Bitcoin will continue with bullish, but volatile momentum. As it lingers in the retracement zone of resistance, progress may not be seen in the next few hours.
Observing the BBs, it can be seen that, despite the volatile bearish recurrences towards the lower BB level of $10,858, Bitcoin is edging towards and touching the upper BB level. The BBs coincide with the ascending trendline displayed on the daily analysis chart earlier in this price analysis.
The MACD indicator shows easing bearish activity over the hours shown in the five-minute chart above. This would seem to indicate that bearish momentum is slowing and bullish movements are beginning to climb. As of this point, BTC stands at $10,891 which is almost a 0.6 percent drop from the initial opening price of the day.
Historical brief year overview
Observing the pattern shown throughout the year of 2020, Bitcoin began the year with bullish momentum which, as the laws of physics dictate, saw a opposite reaction through Feb/Mar time. As can be seen from the ascending trendline, BTC price has been on a slight volatile, but ultimately strong bullish movement since March. Hitting a level of just over $12,000 in August, Bitcoin now contests the $11,000 mark to break the resistance level while finding support levels depicted in the picture below.
Year support levels
Cautious trading is advised as always and all level mentioned should not be relied upon exclusively.