Flash Alert: Monday 16th September
Bitcoin has continued to trade stubbornly around the $10,300 level with strong support seen at its 7, 14, and 21 exponential moving averages.
At the time of writing, BTCUSDT was trading at $10,315 following an earlier high of $10,355 and low of $10,295.52.
Over the last 5 days Bitcoin has seen higher lows and during the previous four sessions seen lower highs. The short-term pattern is beginning to appear more like a symmetrical triangle, which typically signals market indecision. Therefore anyone planning to trade Bitcoin may want to wait for a breakout to occur.
Traders that are bullish on the price of Bitcoin may want to wait to see whether BTCUSDT can close above the 50-day moving average, currently at $10,481. That means breaching the yellow dotted resistance line.
On the other hand, if support at the 7, 14 and 21 exponential moving averages fails on the daily charts, a sharp sell off is likely to ensue. If support fails, then the next level to watch for is around the $10,220, which coincides with the ascending green dotted line that has acted as support on many occasions since the end of August. Failing $10,220, the price may test the 90-day exponential moving average of $9,983.
In the meantime, we note there are conflicting signals between the MACD and stochastic RSI with the former maintaining a bullish crossover and the latter providing 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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