Flash Alert: Tuesday 17th September
Bitcoin has seen interesting price action over the last 24 hours, with BTCUSDT plunging to $10,078 around midday (European time) yesterday before bouncing back to $10,330 later in the day.
However, momentum at the upper resistance levels fizzled out and BTCUSDT has continued to drift lower. At the time of writing today BTCUSDT was trading at $10,198, up from an earlier low of $10,165.
Bitcoin is currently seeing resistance around the 7, 14, 21 day exponential moving averages. These are levels that previously served as support, confirming sentiment is turning sour.
We have re-angulated the lower support level (red dotted line) of the symmetrical triangle formation, using yesterday’s low to reposition the line.
With Bitcoin approaching the end of this symmetrical triangle formation, the market will be forced to deliberate in one direction or the other! This typically implies a bigger move is imminent.
We note Bitcoin had a golden opportunity to formidably challenge resistance levels of the symmetrical triangle formation yesterday although its failure to break out is being perceived as a major weakness.
Based on the renewed selling pressure, especially around its short-term moving averages, its going to be very hard to justify a bullish rally, so any big moves over the next 24-48 hours are likely to be skewed further to the downside.
And anyone planning to trade Bitcoin may prefer to wait on the sidelines for a little longer to see whether a major breakout occurs first.
Traders that are bullish on the price of Bitcoin may want to see whether BTCUSDT can close above its 7, 14, 21 exponential moving averages first – these are levels that coincide with resistance on the symmetrical triangle formation (descending green dotted line).
On the other hand, bears will want to see whether support at the ascending levels on the symmetrical triangle formation (red dotted line) fail.
We note the bullish MACD crossover is decelerating and stochastic RSI is approaching oversold levels, although the indicator continues to provide a bearish signal.
Our previous Flash Alerts may read here as they provide a good trail for anyone wanting to catch up with recent price action.
A follow up post to this Flash Alert may be found here.
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