Bitcoin Technical Analysis: 4-hour chart
The Bitcoin price has taken a big hit in a short period of time. The technical condition has deteriorated significantly due to the price fall of September 7.
First, the price broke out of the rising trend channel that day. The positive trend pattern of higher tops and bottoms was thus broken. The Bitcoin price also fell below the EMA55 and EMA200 on the 4-hour chart for the first time since late July.
Over the past week, the price continued to stabilize in a narrow range. The breakout from this trading range will presumably determine future direction. We may see a bearish consolidation. This means that a similar decline to September 7 awaits us. This decline will be triggered on a breakout below the blue support line at around $44,000. A decline towards the support zone around $41,000/$42,000 then seems obvious.
The air clears only on a breakout above the blue resistance line. However, this is not so easy as the EMA55 and EMA200 are also currently here providing resistance. In addition, the averages look set to cross soon which is a negative technical signal. For a hard technical improvement, the price will have to break above the resistance at $47,419. After a possible breakout, the price can start recovering again towards the resistance at $53,000.
Technical analysis Bitcoin: daily chart
On the daily chart below you may see the above a little better. It is interesting to see that the support area around $40,000-$42,000 is formed by the former tops of last summer. Moreover, this support area is where the 200-day moving average lies. As long as the Bitcoin price quotes above this level we are not throwing in the towel. A price above the 200EMA usually reflects a positive long-term condition.
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