It's been a quiet day for Bitcoin, with prices largely unchanged from yesterday. August was another solid month for the asset, with gains of nearly 14%. With the summer coming to an end, many will be hoping that trading activity returns, and with it, volatility.
Bitcoin has returned to trading in a range, and well, it's just as exciting as the rollercoaster price moves. What we do know is that, when Bitcoin trades sideways, it prefers to rally. Bearish moves happen all too quickly, so we should be grateful for price consolidation just below $50,000.
We haven't mounted a sustained attack on the $50,000 price area, and yet the bears have failed to move the market back below $45,500, and so have installed little fear in the hearts of the bulls.
September has been in my diary as the month we rally, not the month we go sideways. We had that in June, and it was super dull.
The chart above from Bytetree.com demonstrates the issue, and while falling volatility is actually great for building sustainable prices rallies, it makes trading less fun.
Who knows, I may even cover Link, GRT, MATIC, or ETH if we continue in this sideways price pattern.
We're seeing further consolidation above the 200-day moving average of $46,090. This sets Bitcoin up for a potential move higher in September. The $46,800 level was tested and breached briefly today but held firm. We have seen month-end profit taking in Bitcoin after a good run up in July/August, coupled with fresh buying, providing some intraday volatility.
Levels to watch on the topside are $49,300 and last week’s high of $50,500. A break higher will target $57,500. It is worth mentioning moving averages, as the 50-day crossed recently through the 100-day at $41,500, which is providing further support as it swiftly moves higher. If the 50-day breaches the 200-day, we will have a Golden Cross. These are rarely seen and would signify a bullish move higher: Patience required.
Intraday Bitcoin price action continues to track sideways, trapped in a $46,800 to $49,300 range until it breaks out. It is interesting to note that ETH has finished the monthly very strongly, blasting through $3,360 resistance, making a new high in August. The ETH/BTC pair is up 5.5% on the day.
Bitcoin is strong on the weekly chart, with oscillators giving bullish signals. The MACD is positive and the RSI is at 60%. Support is at $43,800 and resistance at $57,500.
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It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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