Time for a breakout? Bitcoin price pushes at key resistance near $23K

On Sept. 12, Bitcoin is doing Bitcoin issues as common. Since Sept. 9 the worth has damaged out properly, reserving a close to 16% achieve and rallying into the long-term descending trendline which seems to have resistance at $23,000. 

BTC/USDT 1-day chart. Supply: TradingView

Maybe BTC and the broader market are turning bullish forward of the Ethereum Merge which is scheduled for Sept. 14, or possibly the elusive backside is lastly in. Weekly chart information from TradingView exhibits that on June 27 and Aug. 15, Bitcoin’s relative energy index had dropped to lows not seen since 2019.

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BTC/USDT 1-day chart. Supply: TradingView

At the moment, the metric has rebounded from a close to oversold 31 to its present 38.5 studying. Some merchants may additionally observe a bullish divergence on the metric, the place the RSI follows an ascending trendline whereas Bitcoin’s weekly candlesticks development downward. Bitcoin’s transferring common convergence divergence (MACD) has additionally crossed over as buying quantity surged and BTC value makes an attempt to interrupt from its present 90-day vary.

As identified in previous analysis, since Jan. 21, Bitcoin value has merely been vary buying and selling in what have turned out to be successive bear flags that see continuation to new yearly lows. Value has persistently encountered resistance on the overhead descending trendline and the worth motion witnessed at the moment and prior to now 90-days shouldn’t be a deviation from the development.

Merchants ought to look ahead to BTC value to push safe just a few every day closes above the trendline resistance and setting a every day increased excessive above $25,400, or perhaps a breakout to the 200-MA at $30,000 could be a superb sight of both a development change or not less than a leg as much as a brand new consolidation vary. Till that happens, the usual apply amongst merchants is to not go lengthy at long run resistance and wait to see whether or not the bullish momentum holds or the prevailing development stays intact.

Associated: The Fed, the Merge and $22K BTC — 5 things to know in Bitcoin this week

In fact, there are a handful of different on-chain and derivatives metrics which may add invaluable context to Bitcoin’s present value motion, however the function of this temporary evaluation is to easily present a fast, snapshot interpretation of BTC’s present market motion and contemplate what merchants may be pondering within the short-term.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your personal analysis when making a choice.