Bitcoin has taken a sudden surge in the last 24 hours. Being in the month of September, Bitcoin showing this bullish momentum is a great sentiment for bitcoin enthusiasts. It is not a random movement but there are two reasons for it ; Donald Trump Buying the “Crypto Burgers” and Fed cutting fund rates by 50 bps. Let’s dive deeper into analysis and try to find out what could be the next move of Bitcoin, will it sustain or rise or fall back?
The chart Analysis
Looking at the chart it is clear that Bitcoin is trying to build a support at $62,800 and finding difficulties to enforce it. Currently BTC is trading at $62,875.2 and this zone is not yet cemented. BTC has tested the support of $61,900 multiple times, yet it is not a solid one. There are chances that bitcoin can fall back and we are going to discuss that, how?
The MACD indicator displayed a profound bullishness during the day, however, as the time passes and the two news are getting old, the bullish candles are slowly fading away. Even though there is a cross-over between the MACD line and the Signal line, but, it looks like the power has already been exhausted. The RSI has almost reached the overbought zone and can be seen at 73.2 points.
Other Technical Metrics
Let’s have a look at the Bitcoin Long/Short ratio chart. In the last 8 hours, it is evident that traders were very bullish towards the price momentum and there are more long trades open in the market. However, as we have seen in the candle chart, the momentum is fading away and bitcoin is failing to construct a support for it. In case, it fails, we would see millions in liquidation.
In/Out of money data from IntoTheBlock shows that the current price zone is a very thin line and there are no chances bitcoin can survive in this little space. It either will have to go up or down seeking support. More than 80% of the wallet addresses holding Bitcoin are now “In the money” which gives a stress of profit taking, that can cause price to tumble.
Liquidity Zone
A large number of investors have purchased high volume of Bitcoin above the current zone. The are waiting for a long time to take out their profit. The seasoned investors understand that doing this will cause btc to roll back, but the market can not trust the “Paper Hands.”
This can cause the price to plummet back to $62,000, or if the panic spreads in the market it can go down to $60,000. Currently, the liquidity lies around $63,500 and $62,500. Now the price moves to either side, there are chances of fall.
Looking ahead
The only possible way Bitcoin does not lose this position is if the investors decide not to take out their profits and more liquidity flows into the market. If Bitcoin crosses $63,000 and confirms the support, we can look towards $64,000 as the next resistance, as it was once the ATH for Bitcoin. It can also give a shock by rejecting the price.
As September is about to end in 10 days, the pressure is high. Let’s hope that the market does not have to face some bad news so that everyone gets to enjoy the rise of Bitcoin.
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