Time for a breakout? Bitcoin price pushes at key resistance near $23K

As usual, Bitcoin continues to do its normal business on September 12. The price has rallied nicely since Sept. 9, posting a nearly 16% gain, and rallying towards the long-term trendline that appears to be resisting at $23,000

BTC/USDT 1-day chart. Source: TradingView

Maybe BTC and the larger market are becoming bullish ahead the Ethereum Merge scheduled for Sept. 14. Or maybe the bottom is finally in. TradingView’s weekly chart data shows that Bitcoin’s relative strength index dropped to new lows on June 27th and August 15th, respectively. This is not the same level as in 2019.

BTC/USDT 1-day chart. Source: TradingView

The metric is currently at 38.5, having rebounded from an almost oversold 31 reading. A bullish divergence in the metric might also be noted by traders. The RSI follows an ascending trendline, while Bitcoin’s weekly candles trend downward. As Bitcoin’s purchasing volume soared, and BTC prices tried to break out of their current 90-day range, the moving average convergence divergence (MACD), has also crossed over.

As we have seen, Bitcoin price has been trading within a range since Jan. 21. These bear flags have led to new yearly lows and continue to trade in the past. The overhead descending trendline has been a constant resistance point for price and today’s and past 90-days price action is consistent with that trend.

BTC traders should be watching for BTC price to move above the trendline resistance. A daily higher high at $25,400 or even a breakout at the 200-MA at $30,000 would indicate a trend change, or at the very least, a jump up to a new consolidation area. The standard trading strategy is to wait for the bullish momentum to hold or if the trend continues to be intact before taking on long-term resistance.

Related: Bitcoin Week 5: The Fed, $22K Bitcoin and the Merge

There are many other metrics on-chain or derivatives that could provide valuable context for Bitcoin’s current price action. However, the purpose of this quick analysis is to give a quick snapshot of Bitcoin’s current market action. It also considers what traders may be thinking in the near-term.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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