Bitcoin (BTC) - Bearish reversal or isolated shock? - Cryptoast

Tuesday, September 7 liquidation sows doubt

Between the July 20 trading session and the very beginning of September, the Bitcoin (BTC) price gained nearly 80%, after successfully defending the $30,000 support.

It should be noted that Bitcoin is the tree that hides the forest, as for the total market capitalization of cryptocurrencies returned to its all-time high in early September, 6 weeks of rise on altcoins that largely contributed and whose bullish slope was becoming excessive again.

As soon as the market got here in contact with the bottom of the massive selling liquidity zone from early May, the $52,800/$58,000 interval, last Tuesday’s brutal sell-off session took place.

The market did not then follow up with any more down sessions, which is a difference from last spring at this point. Isolated liquidation or resumption of the fall is the new technical debate.

Bitcoin would have to remain in a range above the $44,000 support to consider a simply isolated shock after the $52,800 test. In passing, I invite you to watch my video below where I explained the strength of the $52,800 resistance:

Bitcoin and the Ultimate Technical Threshold

As I write this, the flash crash of Tuesday, September 7 has not had a bearish retort, but the technical setup remains fragile.

The hypothesis of a chartist trading range above the $44,000 support would be the perfect scenario for the bullish camp, with an ultimate technical guarantee at $40,000.

To put it bluntly, if the market breaches both of these supports in another massive sell-off, then the die will be cast, Bitcoin could then fall to $30,000. This is the risk at the moment and this week’s weekly close will already tell the tale.

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Bitcoin (BTC) - Bearish reversal or isolated shock? - Cryptoast

Charts of the BTC/EUR pair (weekly data on the left and daily on the right) – Source: TradingView

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About the author: Vincent Ganne

Bitcoin (BTC) - Bearish reversal or isolated shock? - Cryptoast

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Vincent Ganne is a manager at TradingView, a market strategist, a technical analyst, a trainer on the stock market and a speaker on BFM Business. With a long experience in the field of analysis, he offers a global approach to financial markets. From a macroeconomic point of view, as well as from a microeconomic point of view. Vincent Ganne also uses many aspects of graphical analysis in order to forecast medium and long term trends in financial assets.
All articles by Vincent Ganne.

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