Bitcoin Soars: Where Is the Next Stop on the Price Roller Coaster?

Recent Price Movements

On September 12, Bitcoin (BTC) was once again at the forefront, showing its often unpredictable but familiar behavior in the market. Since September 9, Bitcoin’s price has surged appreciably, boasting an impressive spike of nearly 16%. As traders scrutinize the charts, they can’t help but notice that BTC is now flirting with a long-term descending trendline that has positioned resistance around the $23,000 mark.

Is Bitcoin Feeling Bullish?

Some analysts speculate that Bitcoin’s recent upswing could be a bullish sign leading up to the highly-anticipated Ethereum Merge scheduled for September 14. Others are wondering if we’re finally seeing the long-awaited bottom of the market. Weekly charts indicate that back on June 27 and August 15, Bitcoin’s relative strength index (RSI) dropped to levels we haven’t encountered since 2019. Fast forward to now, the RSI has made a comeback from a nearly oversold position of 31 to a more optimistic reading of 38.5.

Understanding the Indicators

It’s worth noting that there might be a bullish divergence in play, as the RSI is following an upward trend while Bitcoin’s weekly candlesticks show a downward trajectory. Additionally, the moving average convergence divergence (MACD) indicator has recently crossed over, and we’re seeing a surge in purchasing volume. This combination of factors suggests that BTC is trying to break free from its 90-day price range.

Resistance and Future Price Targets

Remember, Bitcoin isn’t all sunshine and rainbows. Since January 21, it’s been doing the range trading jig, moving through bear flags that typically lead to new yearly lows. So far, the only thing it seems to encounter are hurdles at that stubborn overhead descending trendline. For traders, it’s crucial to be on the lookout for a few daily closes above the resistance trendline.

1. A break above $25,400 would signal a potential upward trend.
2. Further, a leap to the 200-day moving average near $30,000 would definitely be the icing on the cake.

Until then, the consensus among traders is to refrain from going long when facing long-term resistance and to observe if this newfound bullish momentum holds strong or if Bitcoin will continue its current trend.

Beyond the Charts: What’s Next?

There are also various on-chain and derivatives metrics that can lend additional context to Bitcoin’s price escapades—but that’s a rabbit hole for another day. For now, this analysis serves as a brief glimpse into Bitcoin’s current market performance and reflects the mindset of traders as they weigh their short-term strategies.

“Every investment and trading move involves risk; do your own research!”