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

The expectation of every crypto investor this month is to see some bullish trends in the market. Many top assets have recorded more pullbacks than rallies in the months following the overall market crash.

Every week starts and ends with a new trend for the green or the reds. This uncertainty has kept everyone guessing and scared of imminent losses if the bearish trend continues. But it seems that the week beginning from September 5 to 12 brought a lot of bullish moves for many cryptos.

Related Reading: Why Ethereum Price Is Unlikely To Dump After “The Merge”

There were some pullbacks, but the rallies seemed to take the upper hand as the week ended. For instance, Bitcoin closed the week above $21 after struggling to reach the $20K mark without success. 

BTC price from September 5 was $19,988 and continued dropping until it reached $19,328 at the opening of markets on September 9. Before the market closed the same day, BTC spiked above $20 to hit $21,381.15. 

Indicators of an Imminent Bullish Trend 

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

First, BTC’s sharp bounce in the first week of September created a long lower wick indicating buying pressure. Also, the coin price hit a bullish close of $21,826 after maintaining a $19400 horizontal support area since June. 

Analysts observed that BTC’s all-time high price of the week and its closing price were very close, showing sellers could not bring the price down. This situation clearly suggests that the bulls are pushing. Also, the weekly Relative Strength Index for BTC moved away from the all-time low region and the oversold territory.

If the price keeps pushing upwards, the nearest resistance area for BTC will be $29,425. This level will represent the 0.382 fib retracement resistance level of the recent portion of its downward movement. 

Analysts foresee a second resistance level at $37,300, showing a 0.382 fib retracement resistance level of the overall downward movement from BTC’s all-time high. 

Bitcoin’s price surpasses $22,000 level. Source: BTCUSD price chart from TradingView.com

Bitcoin Moves on Trading Chart

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

Related Reading: Crypto Traders Bleed Heavily After Betting Against Market

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

Featured image from Pixabay and chart from TradingView.com

Tags: bitcoinbitcoin red closebtc

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