Bitcoin Closes Week Above $21K, Is Bullish Reversal In Sight?

Crypto News
4 Min Read

Bitcoin Closes Week

Every crypto investor’s expectation this month is to see some bullish trends in the market. Many top assets have seen more declines than gains in the months following the general market crash.

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Each week starts and ends with a new trend for green or red. This uncertainty has left everyone guessing and fearing imminent losses if the bearish trend continues. But it seems that the week of September 5-12 brought a lot of bullish moves for many cryptos.

Related reading: Why Ethereum Price Is Unlikely To Be Dumped After “The Merge”

There were some pullbacks, but the rallies seemed to take over as the week ended. Bitcoin, for example, closed out the week above $21 after struggling to hit $20K without success.

BTC price as of September 5 was $19,988 and continued to fall until it reached $19,328 when the markets opened on September 9. Before the market closed the same day, BTC peaked above $20 to reach $21,381.15.

Indicators of an impending bullish trend

After finishing the week above $21K, Bitcoin climbed past that price level to reach $22,122.04 on Monday, September 12. Analysts have been studying other indicators of a possible bullish reversal for the number one crypto.

First, BTC’s sharp jump in the first week of September caused a long, lower pit, indicating buying pressure. Also, the coin price reached a bullish close of $21,826 after maintaining a horizontal support area of ​​$19400 since June.

Analysts noted that BTC’s all-time high of the week and the closing price were very close, showing that sellers were unable to lower the price. This situation clearly suggests that the bulls are pushing. Also, the weekly Relative Strength Index for BTC moved from its all-time low and oversold territory.

If the price continues to move up, the closest resistance area for BTC is $29,425. This level represents the 0.382 fiber retracement resistance level from the recent part of its downward movement.

Analysts are forecasting a second resistance level of $37,300, with a 0.382 fib resistance level retracing the overall downward movement from BTC’s all-time high.

BTCUSD
Bitcoin Closes Week The price of Bitcoin surpasses the $22,000 level. | Source: BTCUSD price chart of TradingView.com

Bitcoin moves on trading chart

BTC’s daily price chart shows that it is moving towards a bearish candlestick (red icon). But currently, the daily RSI is bullish as it has just crossed the 50 line, the previous resistance. But BTC needs to regain the channel and the 0.5-0.618 fib retracement resistance region for the move to be considered bullish.

Related reading: Crypto traders are bleeding heavily after betting on the market

Analysts have also indicated that the BTC wave count is already in the fourth wave of the five-wave uptrend that started on Aug. 7. The move suggests that after the price corrects briefly, there will be an increase towards $22,700, with a 0.618 fib retracement resistance level.

Featured image from Pixabay and chart from TradingView.com

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