Bitcoin [BTC] traders witnessed one of the most exciting days in terms of price action on Thursday. Yesterday can be divided into two parts – a bearish and bullish both respectively extreme.
At around 3: 00 hours on 19th September Bitcoin tested laws at $9600. As the day progressed, the price stayed below $10,000 around $9850. However, towards the end of the day, the price rose staggeringly by above $400 to record high at $10,380.
Trading Analyst, Josh Rager noted that $9400 are the stable support levels that BTC failed to break. Hence, there is a higher possibility of an upside. He also tweeted about the intersection of the 20 Day Moving Average on the weekly with the price at $9800. He tweeted,
$ dose of hopium
20 MA on weekly held as support entire last uptrend w/ no significant-close underneath
20 MA currently at $9800 just in time for next major move
Currently, the price seems to be narrowing between the break-out range. Of the descending triangle. Moreover, the levels of break-out above the triangle is closing near $10,500.
While the hammer/hanging man formation on the daily does not define any pattern here. The violent price action might look like a weakening case of the bears. Crypto Fibonacci, a crypto trader, suggested in a tweet,
And here we are. Things getting active just as we approach that downtrend line. Next day or 2 should tell us a lot. If that last wick down was all the Bears could do, then God help them.
The price is leaning bullish with a lot of bullish divergences.
Nevertheless, it is still in the no-trade zone between break-out levels. The volume on Bitcoin is also considerably low. Hence, any decisive action could lead to the formation of a large candle on the daily.
The price of Bitcoin at 3: 45 hours UTC on 20th September is $10,215.
Two Important Events Next Week
The Technical Analysis of Bitcoin [BTC] is not yielding to either the bulls or bears. Hence, the traders will look forward to fundamental indicators in Bitcoin. While on-chain indicators are bullish, the regulatory environment and volume will see massive announcements next week.
The U.S. House, Financial Services Committee, is set to meet with the SEC (Securities Exchange Commission) chairman Jay Clayton on 24th September. The Senate will discuss matters regarding crypto regulations. They will also talk about the Libra project initiated by Facebook.
This coincides with the Bakkt launch on 23rd September which has also created much hype over the years. The result of these events will likely provide a decisive direction to the market.
Where do you think the price is headed next? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com