Bitcoin is a decentralized digital currency. It operates without a central bank or single administrator and can be sent from user to user on the P2P bitcoin network. Introduced in 2008 by an anonymous entity, Satoshi Nakamoto offers transparency, limited supply and is often viewed as a hedge against traditional financial systems.
BTCUSD 1W Chart Analysis, September 12, 2023
Bitcoin is hanging on a crucial support.
The 1W Chart shows that Bitcoin’s ~25,500 level (marked with a horizontal orange line) is crucial. In the bear market in June 2022, its break resulted in an almost 34% red candle. Since May 2023, the weekly candle has touched this level 9 times, most recently 5 times in a row. It should be noted that this support coexists with the retracement of Fibo 0.382 (25 484).
The RSI and MACD oscillators also emphasize the bearish momentum. The first one is below 50 and is falling, which usually means entering a bear market. Death cross on a MACD from the last day of July and death cross on EMAs (green and orange lines) usually herald upcoming declines. Bitcoin’s valuation is also not helped by the relatively high dollar index and the risk of further rate increases by the Fed.
Fibo retracements of 0.5 (23,550) and 0.618 (21,617) remain essential to watch. The second level is vital because, between January and March 2023, it served as price support many times. For now, the price remains 15% away from this retracement.
The closing of the weekly candle may prove crucial for further moves. If it occurs below the 0.382 retracement, it may favor declines.
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