On September 12th, bitcoin is doing bitcoin things as usual. The price has broken out well since September 9th, booking gains of around 16% and rallying into a longer-term descending trendline, which appears to be resistance at $23,000.
Perhaps BTC and the broader market are turning bullish ahead of the Ethereum merge scheduled for September 14th, or perhaps the elusive bottom is at an end. Weekly chart data from TradingView shows that on June 27 and August 15, Bitcoin’s relative strength index fell to lows not seen since 2019.
Currently, the metric has rebounded from oversold near 31 to its current 38.5 reading. Some traders may also note a bullish divergence on the metric, where the RSI follows an ascending trend while Bitcoin’s weekly candlesticks are on a downward trend. Bitcoin’s Moving Average Convergence Divergence (MACD) has also crossed as buying volume increased and BTC price attempts to break above its current 90-day range.
As noted in a previous analysis, since January 21, the price of bitcoin has only been range trading, which has turned out to be a persistent bear flag, continuing to hit new yearly lows. The price has consistently faced resistance at the upper descending trend line and the price action is not deviating from the trend seen today and over the past 90 days.
Traders should look to BTC price to secure some daily closes above the trendline resistance and set a daily high above $25,400, or even a breakout of the 200-MA at $30,000. Would be an excellent view of a trend change or at least a leg up to a new consolidation range. Until this happens, standard practice among traders is not to go over resistance for a long time and wait to see if the bullish momentum continues or the prevailing trend continues.
related: Fed, Merge and $22K BTC – 5 Things to Know About Bitcoin This Week
Of course, there are some other on-chain and derivatives metrics that can add valuable context to bitcoin’s current price action, but the purpose of this brief analysis is only to provide a quick, snapshot interpretation of BTC’s current market action and consider whether Traders must be thinking in the short term.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
