Bitcoin Weekly Analysis

Bitcoin Weekly Analysis – 7th September

Last week’s price action on Bitcoin has been quite terrible for the late investors. After trying to break $12,000 for the third time, the price was rejected and finally dipped to the $10,000 support.

Today we will give you the tools to analyze and try to forecast the future price of Bitcoin. 

Keep in mind that in all the situations that can happen, since you are invested, you must have a plan.

Bitcoin Weekly Chart Analysis

Bitcoin Price Technical Analysis Weekly
Bitcoin Weekly Chart on TradingView

The tools used for this analysis are the following:

  • Support and Resistance Levels

You can learn more about how to use those indicators in this Guide.

Bitcoin closed its last week’s candle below $11,500. The conclusion we can do about it is that the price made another deviation about this strong resistance.

This shows here the strength of this current resistance.

Below we can notice that we just dipped right on a support at $9,700. Since the direction of the trend is upward, we can expect a proper bounce in this area. However, if this level does not hold, we can expect a retrace to lower levels, such as $7,700 or even $6,100.

My plan here would be to hedge the current risk by unloading a significant part of my BTC holdings below this supply area at $12,000. We would need to wait for more bullish Price Action to reload, but the support areas mentioned above can be part of the plan.

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Bitcoin Daily Chart Analysis

Bitcoin Price Technical Analysis Daily
Bitcoin Daily Chart on TradingView

The tools used for this analysis are the following:

  • Support and Resistance Levels
  • EMA 200
  • RSI and divergences
  • MACD

Last week, in our Bitcoin Weekly Analysis – 31st August, we noticed a bearish divergence. We also highlighted the support area and a trendline.

Today, we can notice the price dumped in our area of interest and also on the 200EMA.
Lagging Indicators such as the RSI and the MACD are not showing any signs of strength, so the plan here would be to be careful and maybe invest twice, the first time here and the second time, once RSI & MACD shows strengths.

Bitcoin H4 Chart Analysis

Bitcoin Price Technical Analysis H4
Bitcoin H4 Chart on TradingView

The tools used for this analysis are the following:

  • Support and Resistance Levels
  • RSI and divergences

The H4 Chart is the most transparent chart to analyze a possible bounce here.
Indeed, on the RSI side, we can notice a confirmed bullish divergence.

The support trendline from the daily chart has also acted as a support.
However, I would be careful. The CME gap is still sitting at $9,600. It gives a high probability of going down and making a rejection from there to close the gap.
Resistance levels are highlighted on the chart with the red area and the white horizontal lines.

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Market Sentiment Analysis

Fear & Greed Index

Using the Fear & Greed Index, we can roughly have an estimation of the Market Sentiment. 

As you can notice, we are in an area of Extreme Fear.

Most traders are fearful after the dump, and it shows. We can decide to bet against the trend and accumulate during those “Fears” movements with a high chance of reversal when going below 30.

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