As highlighted in last week’s analysis, Bitcoin had a big fall last Sunday night down to $ 111,800. The price then jumped back to try it $ 113,800 resistance level and the 21-day EMA for $ 114,000, but was rejected there and fell back to the $ 111,300 support level. This level produced another jump for Bulls back to the 21-day EMA, but was denied access again over $ 113,800 resistance level and dumped just below the weekly support of $ 109,500 on Thursday. Price stood from the Thursday Low to close the week out at $ 112,225.
Key support and resistance levels now
As the price closed over the 21-week EMA for $ 109,500 to end the week, Bulls will look for this support to last in the future. $ 109,500 should be the floor on its way in this week if Bulls are to produce a weekly higher low and turn things around. $ 105,000 is the next support level down and there is the potential for a larger turn from there down to about $ 102,000. Losing $ 102,000 opens the door down to greater prolonged support for $ 96,000.
On the head, Bulls will look for the price to close over the $ 115,500 resistance level to restore the uptrend. This would give Bull’s confidence to tackle $ 118,000 resistance again and probably move over it. $ 121,000 sits over here as the gateway to new heights, but will probably not last long if we get a weekly close over $ 118,000.
Outlook for this week
Look for price to test $ 109,500 low early in the week with the potential to secure this level as support for a bullish movement back to $ 113,800. It is likely to take a very strong purchase pressure to push over $ 115,500 resistance this week, so expect this level to hold a lid on things if $ 113,800 can be conquered. Bulls seems to be putting a green light this week to confirm last week as a higher low.
However, bias is still bearish on the weekly chart, so we should foresee the $ 113,800 resistance level to keep in the short term. Losing $ 109,500 on the daily chart could lead to another big price drop this week, down to new low, and test $ 105,000 to $ 102,000 support zone.
Market mood: Bearish – With a big red light to close the week, the bears are stuck in control. Bulls will have to come out strong this week to defend the 21-week EMA support.
The next few weeks
The weekly chart is still bearish until proven otherwise. Bulls need to tilt bias back in their advantage to promote more positive price action in the future; It is possible for them to do so with a strong close to ending this week. With September’s interest rate behind us, the markets will be looking for more interest services in the FOMC meetings in October and December to keep the capital flowing. Investors will see US financial reports close to the coming weeks for data that supports additional cuts. Any obstacles to further cuts in the data are likely to result in more bearish price action and further sales.
Terminology Terminology:
Bulls/Bullish: Buyers or investors who expect the price to go higher.
Bears/Bearish: Sellers or investors who expect the price to go lower.
Support or support level: A level where the price should have for the asset, at least originally. The more touching support, the weaker it becomes and the more likely it is to fail to keep the price.
Resistance or resistance level: Opposite of support. The level that is likely to reject the price at least originally. The more touches of resistance, the weaker it becomes, and the more likely it is to refrain from holding back the price.
EMA: Exponentially moving average. A moving average that applies more emphasis to recent prices than previous prices, which reduces the delay of the moving average.