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.
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.
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)
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.
Follow <a href=”https://cryptoast.fr/actu/analyse-technique/”>our section dedicated to technical analysis
Receive a summary of the crypto news every Sunday and that’s it.
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some of the links in this article are affiliate links. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investments in crypto-currencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, by any damage or loss caused as a result of the use of a good or service highlighted in this article. Crypto-asset related investments are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
About the author : Tagado