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Bitcoin traders pinpoint support levels as BTC price taps $26.2K

CryptofreePress Staff by CryptofreePress Staff
August 28, 2023
in Bitcoin
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Bitcoin traders pinpoint support levels as BTC price taps $26.2K

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Bitcoin (BTC) recovered its weekly shut losses on Aug. 28 as danger property rose on China tax cuts.

BTC/USD 1-hour chart. Supply: TradingView

BTC worth 200-week EMA stands out as assist

Information from Cointelegraph Markets Professional and TradingView adopted a BTC worth uptick into the day’s Wall Avenue open.

BTC/USD managed $26,226, marking its highest ranges since Aug. 25 and absolutely compensating for weak point seen in a single day.

Information that China had minimize tax on inventory buying and selling by 50% appeared to buoy U.S. futures into the open. The S&P 500 and Nasdaq Composite Index subsequently opened up 0.6% and 0.7%, respectively.

Eyeing the buying and selling panorama for the approaching week, Michaël van de Poppe, founder and CEO of buying and selling agency Eight, flagged the 200-week exponential shifting common (EMA) at round $25,700 as a key assist zone to guard.

“To begin with, the 200-Week EMA lies beneath us. It is at $25,650 (Bitstamp) or $24,750 (Binance). The conclusion is, you do not wish to drop beneath that stage and also you’d ideally wish to mimic 2015-2016 sideways interval,” he wrote in a part of an X post.

“If the 200-Week EMA sustains, conclusions are that we’re bottoming out right here and we’re probably getting a large entry level. If it is misplaced, I would be taking a look at a case of $19,500-21,500 as the subsequent massive entry level and last capitulation. On the decrease timeframes and over the week, it is nonetheless potential to brush under the 200-Week EMA. So long as we do not lose the extent.”

BTC/USD annotated chart. Supply: Michaël van de Poppe/X

Van de Poppe continued that order ebook liquidity “most definitely” resided under the 200 EMA.

“In that regard, a sweep of that space is the most definitely consequence,” he wrote.

“Two methods may be deployed: 1 – Sweep at $25,750 for an aggressive lengthy entry in direction of the opposite facet of the vary (entry can solely be taken after the sweep and when $25,750 is reclaimed). 2 – Sweep of $25,200 in direction of $24,700-25,000 (the 200-Week EMA on Binance) and bullish divergences on increased timeframes. That is the golden commerce and could possibly be the beginning of a reversal. Nonetheless, $25,750 must be reclaimed within the bounce, in any other case this commerce could possibly be invalid/stopped out.”

BTC/USD annotated chart. Supply: Michaël van de Poppe/X

Fashionable dealer Titan of Crypto in the meantime highlighted $25,900 as a distinguished zone of curiosity.

“$25,900 is the extent to look at,” he summarized in a part of X evaluation.

Bitcoin RSI stays “very low” for second week

Elsewhere, fellow dealer Pheonix referenced persisting low ranges on Bitcoin’s relative energy index (RSI) on decrease timeframes.

Associated: September ‘crash’ to $22Okay? — 5 issues to know in Bitcoin this week

As Cointelegraph reported, relying on the timeframe in query, these reached ranges not seen in 5 years after the 10% BTC worth dip ten days in the past.

“RSI nonetheless very low, for 1.5 weeks already now,” a part of X commentary on the day learn.

“7/eight instances it went under 25 the final years, corresponded to the (native) backside & a 30% minimal rise adopted.”

Additional evaluation confirmed the one exception to the rule coming in September 2019.

RSI makes an attempt to measure when an asset is overbought or oversold at a given worth level.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.