Welcome to the new month and new trading week analysis of the BTC market. The price of the number one cryptocurrency started the fall when the price of the BTC failed to close above the previous zones of support of $24500K as the price retested the area some days ago. Top brokers who are biased toward short options took the price down from the zone.
From the crypto fear and greed index, it is seen that the crypto market is recovering amidst the cautious state of investors and crypto brokers as the sentiments rose to their best recently. Let’s dive into the charts, following a top-down overview, then rap it all up with a recent event in the crypto space.
BTCUSD: Technical Analysis
Monthly Resistance Levels: 48200, 32900.
Monthly Support Levels: 17600, 19660.
Optimistic crypto brokers see bitcoin rising above the ATH when the next bullish run takes effect, and that is why the bullish traders are willing to see their bitcoin portfolio as a long-term investment. The bulls may continue to push the price up for a change of trend if the current zone of support is strong.
Weekly Resistance Levels: $26000, $25400.
Weekly Support Levels: $13800, $17600.
From the weekly time frame, you can see that the BTCUSD pair is in a corrective state as the price of BTC crawls upwards. The previous candle of the last trading week for July closed in favor of the Buyers after struggling to break out for an upward run. This trading week ushers in a new month and new expectation as long position traders want to take the price higher.
A strong psychological block is around the 13800 level and 17600 which has been respected by the price for weeks. Those zones are triggers for the Buyers and it will send in fear into the cryptocurrency market if the price of bitcoin should break out below the zone.
Daily Resistance 24300, 24000.
Daily Support 18900, 20600
The price of bitcoin did rise as expected when it was able to bounce from the support levels of 17500 and 19000. However, the resistance level of 24500 proved to be a tough zone for the buyers as they were rejected by the sellers who took the price down after the retest of the area.
If crypto brokers can connect the trendline from the highs of 09 May 2022 down to the high of 20July 2022 you can see that the price has broken above the line which has shifted the bias for an uptrend on the daily chart. We can wait for the retest of the trendline to know if the zone will reject the price of bitcoin at the 20630-dollar mark for a bullish surge.
After the price was rejected at the 24300 level, the setup for a bullish breakout scenario on the daily chart could not be executed. We have to wait for the price to get rejected around the 20600 zone for another build-up for bullish momentum to take the price higher for another rally to the upside of the BTCUSD crypto market.
The resistance levels of 24500 and 22500 are dominated by the Bears and they will keep putting pressure on the Bulls anytime the price gets to that level. The trend remains bearish until the Buyers can turn the trend in their favor. A breakout above the resistance levels will take away the bearish scenario but anytime the price fails to close above the zones the sellers will take the price down.
Bitcoin BTC News Events
TWO SENATORS WANT BITCOIN AND ETHEREUM WITHIN CFTC SCOPE.
Senator Debbie Stabenow and Senator John Boozman introduced a bill that would put bitcoin and Ethereum under the direct scope of the Commodity Future Trading Commission (CFTC). The bill will empower the CFTC with exclusive Jurisdiction over the digital commodities spot market will be a safeguard for the consumers and also bring integrity and innovation into the digital commodities space.
The chairman of CFTC was previously working with Stabenow and introduced new technology to boost its oversight of cryptocurrencies. Rostin Behnam said that his federal agency is ready to supervise spot markets for some digital tokens.
The bill of Boozman and Stabenow expects any business acting as an exchange or digital commodity platform to register with the CFTC as a trading facility which will also make exchanges monitor trading activities among other restrictions to further safeguard crypto customers.
Conclusion and Projection
Looking at BTCUSD from the daily chart, you can see that the price is ranging between the high of the 24000-dollar mark and the low of the 20000-dollar mark for the past weeks. Generally, the bitcoin market is bearish and a possible scenario of the bitcoin price dropping into the psychological levels of 17000 and 13500-dollar mark is possible if the bulls fail to hold the 20500 support levels.
This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk
- BTCUSD: Weekly Technical Analysis - September 30, 2022
- BTCUSD: Bulls to Dominate the Zone for the Price to Rise is Expected - September 16, 2022
- BTCUSD: Price of Bitcoin Bounce Expected - September 2, 2022