Is it already the end of the rise for the Bitcoin (BTC) price? - Cryptoast

Bitcoin falls 19.5% in one day

As El Salvador celebrated its “Bitcoin Day” on Tuesday, September 7, 2021 by officially adopting the queen of cryptocurrencies as a legal tender in its country, a very sharp correction in the Bitcoin price occurred after a major rejection of the $52,900 resistance zone.

Le graphique hebdomadaire du Bitcoin (Weekly)

The weekly chart of Bitcoin (Weekly)

A correction that remains, at the time of writing this analysis, a pullback on the Tenkan (in turquoise) and the Kijun Daily (in purple). Thus, we are not necessarily witnessing a reversal of the market trend, but rather a return to equilibrium that could still allow BTC to rise again after a consolidation around the Kijun Daily at $47,800.

Indeed, the Ichimoku curves are acting as support in an uptrend and the Chikou Span (in white) is bouncing around prices for the moment, not validating a break of the Kijun Weekly (flat in yellow) at $46,870. As a reminder, as long as prices do not break below the Kijun Weekly on the close with a confirmation on the next candle, the trend remains bullish by definition.

We must hold the double support

So the question is whether Bitcoin’s price will be able to hold above the Kijun Weekly close, or whether we are truly witnessing the establishment of a medium-term bearish trend.

Le graphique du Bitcoin (BTC) en Daily

Bitcoin (BTC) Daily Chart

To answer this question, we will have to be patient and wait for today’s close to find out whether or not the price is re-entering the symmetrical widening wedge of the yellow dip. It should also be noted that the upper trendline of the wedge corresponds exactly to the Kijun flat in Weekly at $46,871.

Thus, there is still a strong chance that this level will hold, which would allow Bitcoin to move higher in the coming days, towards its breakout target at $58,900. On the way, we’ll still have to watch out for SSB resistance at $55,464 and $56,090.

In the opposite case, if the price re-enters the yellow pattern, we will have to rely on the high cloud as support, located around $45,659. If the price enters the cloud, then the price should head towards $40,600.

Check out our guide to buying Bitcoin (BTC)

In conclusion

Bitcoin (BTC) is in a correction and needs to bounce off its Weekly Kijun at $46,871 to preserve its uptrend. A return below this level at the weekly close would be concerning while a close above it would be reassuring.

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About the author : Tagado

Is it already the end of the rise for the Bitcoin (BTC) price? - Cryptoast