Bitcoin has seen a significant surge over the past 24 hours. In September, this bullish momentum is generating great interest among cryptocurrency enthusiasts. There are two main reasons for this rise: Donald Trump buying bitcoin and the Fed cutting rates by 50 basis points.
Chart Analysis
Looking at the chart, it is clear that Bitcoin is trying to build support at $62,800 and is having difficulties enforcing it. Currently, BTC is trading at $62,875.2, and this zone is not yet cemented. BTC has tested the $61,900 support multiple times, yet it has not solidified. This implies that there is a possibility of a fallback. The MACD indicator shows profound bullishness, but as time passes and the news mellows, bullish candles are slowly fading away. Even though there is a crossover between the MACD line and the Signal line, it looks like the power has already been exhausted. The RSI is nearly at the overbought zone, standing at 73.2 points.
Other Technical Metrics
Let’s take a look at the Bitcoin Long/Short ratio chart. Over the last 8 hours, it is evident that traders were very bullish towards the price momentum, and more long trades are open in the market. However, as seen in the candle chart, the momentum is fading away, and Bitcoin is failing to construct support. If it fails, we would see millions in liquidation. In/Out of money data from IntoTheBlock shows that the current price zone is very narrow, indicating Bitcoin can either go up or down seeking support. More than 80% of wallet addresses holding Bitcoin are now 'In the money,' which gives stress on profit-taking that can cause the price to tumble.
Liquidity Zone
A large number of investors have purchased a high volume of Bitcoin above the current zone. They are waiting for a profitable window to take out their profit. Seasoned investors understand that this might cause BTC to roll back, but the market cannot completely trust 'Paper Hands.' This situation may lead to a price drop back to $62,000, or if market panic spreads, even down to $60,000. Currently, liquidity lies around $63,500 and $62,500. Any price moves to either side might result in a fall.
The only possible way for Bitcoin to maintain its position is if investors decide not to take out their profits and more liquidity flows into the market. If Bitcoin crosses $63,000 and confirms the support, we may aim for $64,000 as the next resistance level, as it once was Bitcoin’s ATH. There’s also a potential for price rejection. As September is about to end in 10 days, the pressure is high. Let’s hope the market does not face any negative news so that everyone can enjoy Bitcoin’s rise.
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