As Bitcoin failed to break the $64,000 resistance, it continued to fall. In the hourly chart it has fallen under the moving average 20, 50 and 100. This suggests a consolidation zone might form around this area. Let’s analyze what has changed in the market and how it can affect the movement of Bitcoin.
A Supreme Resistance
As we all know the $64,000 zone is a great resistance area as this was once an ATH of Bitcoin. The weekly chart provides proof of that. In 2021, it took double attempts to the largest crypto to claim this spot. Once fallen from the peak, it took bitcoin 3 years to breach this zone to reach $70,000 but could not hold that position for long. The zone above $62,000 does not have a definite support level. But there is much resistance beyond this point. That is exactly what bitcoin is facing right now.
This zone has played as a consolidation area for bitcoin for 2 days already and it looks like Bitcoin is planning to spend the next few days of September in the same zone. This would be the best gameplay as of now. If Bitcoin falls under $62,000 again, an additional bull power will be required.
Other Indicators
The MACD indicator shows that after reaching this peak point, Bitcoin has always witnessed a high surge in sellers. This is because a lot of investors have bought at the top and they try to book some profit before moving further. Even some whales play the same game at this level. As evident that September has bearish sentiments, the market can go down any time. Although, Greed and Fear index has neutralized and was recorded at 54 this morning, the RSI is yet to lift off. Bitcoin is currently trading at $63,094 and over 80% of the investors are now in the money.
The long-short ratio shows that traders are lacking the bullish sentiment. There are more shorts open than the longs. A simple reason for this is the burden of moving averages on the price and RSI along with MACD showing bearish momentum.
What to expect?
The current movement suggests an upcoming consolidation zone. We might see the bitcoin price move between $62,000 and $64,000 for this week. There are high chances that with the start of a new month, we might see a sudden rally in the price and the traders should stay ready with their risk management for this shift.
