Although today isLabor Day in the U.S. and a day off for the country’straditional markets, the crypto market never sleeps, especially in anticipation of important macroeconomic events inthe coming week.
Over the next four days, investors will have to watch closely for speeches from the heads of the SEC and the Fed, the release of the Fed’s Beige Bookand what follows after Tuesday’s deadline for comments on Joe Biden’scrypto executive order.
At the same time,Bitcoinseems to be on the verge of the next big move, having been in accumulation for almost 10 days now, after its quotes collapsed by the end of August. Unfortunately, the big move is more likely to bebearish, because… What preceded the latest drop? That’s right, the weekly accumulation, which in turn was preceded by a similar drop of 10%.
As of right now, Bitcoin is trading in an extremely narrow range of $20,300 to $19,500, with $19,000 acting as the last block of support. At the same time,with BTC approachingthese levels, the number of those wishing to open short positions increases rapidly, as shown by thelatest CoinShares report.
Let’s be honest, neitherGensler—who is considered a fierce opponent of crypto in the community—nor Powell, who has become an even greater “hawk” on inflation, should be expected to deliver rhetoric that would keep Bitcoin and other high-risk digital assets fromthe fate of the month traditionally referred to as “Black September.”
Bitcoin price analysis
Bitcoin price remained in a range below the$20,500 and $20,550 resistance levels. Recently, BTC formed a support base above the $19,600 level and started an upside correction.
There was a move above the $19,800 resistance level and the100 hourly simple moving average. The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $20,398 swing high to $19,600 low.
Finally, there was a spike above the $20,000 resistance. However, the bears were active near the $20,100 zone. Bitcoin price failed to clear the 61.8% Fib retracement level of the downward move from the $20,398 swing high to $19,600 low.
It is now trading below the $20,000 level and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $19,700 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $19,900 level and the 100 hourly simple moving average. The next major resistance sits near the $20,100 level. The main resistance is still near the $20,400 and $20,500 levels. A clear move above the $20,500 resistance might send the price towards $21,200. Any more gains might start push the price towards the $22,000 resistance zone.
If bitcoin fails to clear the $20,400 resistance zone, it could start another decline. An immediate support on the downside is near the $19,700 zone and the trend line. The next major support sits near the $19,600 level. The main support sits near the $19,500 level. A clear move below the $19,500 support might start a major decline. In the stated case, the price may perhaps test the $18,500 support.
Hourly MACD – losing pace in the bullish zone
Hourly RSI (Relative Strength Index) – near the 50 level
Major Support Levels – $19,700, $19,500
Major Resistance Levels – $20,000, $20,400 and $20,500
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