Bitcoin on September 10, 2022 – The king of cryptos has not said his last word!
The king of cryptos still on borrowed time! – Once again, Bitcoin (BTC) comes out of the water surprisingly. In such a way that the hope of a return to better fortune would even be put back on the table. The pretext of a slight consolidation of the dollar index would not be unrelated to this burst of the king of cryptos. And to the extent that sellers are forced to buy back their positions, that would explain the violent rebound in Friday’s session.
The latest technical analyzes would possibly show that the bearish pressure would have struggled to shift into high gear for more than ten days. This would suggest that BTC would still have resources to delay the timing of the resumption of its bear run since its last ATH in November 2021.
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Bitcoin in weekly units – New boost on $20,000
While many investors were about to abdicate seeing Bitcoin annihilate its gains from the technical rebound since mid-June, an unexpected boost kept prices above the $20,000 support. Especially since this week’s bullish candle would have taken the sellers on the wrong foot, who themselves thought they had done the essentials with a view to a resumption of the bear run.
From this observation, which remains fragile, BTC prices could try to go back above the Tenkan. With the hope that they will come back on the summer highs at the contact of the resistance of $26,000. This would make it possible to form a second trough from the $20,000 support, and therefore give rise to a double bottom.
Assuming that this bullish chart pattern comes to be validated by the crossing of $26,000, the king of cryptos would potentially soar towards $33,000, near the resistance at $35,000. At the same time, it would coincide with prices that would break above the descending line since its last ATH in November 2021 and the Kijun within a hundred dollars.
But despite this market scenario which would relieve cryptocurrency investors, BTC prices and the Chikou Span would still lag below the Kumo (Ichimoku cloud). Hence my caution on a possible positive trend reversal. And does next week still have to confirm this unexpected bullish momentum?
Bitcoin in Daily Units – The King of Cryptos Heading for Triple Resistance
Even if Friday’s session resulted in a rise of around ten percent, I can’t find any graphic justifications to indulge in excessive optimism. And for good reason, bitcoin prices have certainly crossed the daily Tenkan, but are likely to come up against a triple resistance which is located simultaneously around the Senkou Span B (lower limit of Kumo), the Kijun and the resistance of $22,000.
However, as we speak, the small thickness of the Kumo in daily units suggests that a rebound beyond this threshold in the short term would not be insurmountable. In this case, BTC prices would initially move back inside the cloud. Then in a second time, they would cross it back above with the possibility of taming the descending line of the bear run and joining the resistance of $26,000.
Conversely, a failure under this triple resistance would plausibly constitute yet another blow for the king of cryptos. Because precisely, it could revive the threat below the $20,000 support. To the point that it would trigger a next downward wave towards the $12,000 support.
In summary, many cryptocurrency investors seem to believe in the $20,000 myth. Not only did it correspond at the time to the ATH of 2017 (or the penultimate bull run). But also, this critical and symbolic threshold had been the triggering point for the last bull run that helped catapult BTC prices towards $69,000.
Even if I would like to hang on to it, the fact that the current uncertainties on the financial markets are struggling to calm down significantly, encourage me to favor a waiting position. Because let’s not forget that Bitcoin’s bear run since its last ATH in November 2021 is still in full swing until proven otherwise. It would therefore take a performance of more than 125% to correct the last wave of decline since its last failure below the resistance of $46,000.
Worse still, crossing the downward line would not be enough to consider that the worst would be behind us. Hence my belief that buyers will have struggled to regain the upper hand over sellers for quite a while. And until prices for the king of cryptos manage to break through the significant thickness of the future Kumo in weekly units in support of first-order fundamental improvement, I would rule out an upcoming bull run at risk. of a capitulation so dreaded by cryptocurrency investors.
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