Bitcoin Approaching Critical Support: Prepare for a Big Move
Bitcoin is entering a decisive phase this September, with a Descending Broadening Wedge pattern forming on both the weekly and daily charts. This pattern typically signals potential volatility, and we are now approaching the descending support trendline, which also aligns with the wick from the sharp price dump on August 5th. This region, around 48K, is likely to be tested in the coming days as the market seeks to sweep liquidity.
Key Support Zones to Watch:
Crucial Support Zone 1: The first line of defense. If Bitcoin holds here, we could start seeing signs of bullish momentum returning.
Crucial Support Zone 2: A deeper level of support. Breaking below this zone could lead to a more extended bearish trend.
In the event that these levels are broken and confirmation bearish candles start forming, we could see Bitcoin testing 42K, 40K, and even 36K in the weeks ahead. However, if Bitcoin holds these zones and begins to print higher highs (HH) and higher lows (HL), it would be an early sign that the downtrend might be over.
Also an important element in this setup is the 100-day EMA, which aligns perfectly with Crucial Support Zone 2. This adds a layer of confidence that the price may find strong support here. The confluence of the 100-day EMA with this key support level suggests that a touch of this zone could trigger the next major move, potentially kickstarting a rally.
Strategy for Traders:
Swing Traders/Spot Traders: Pay close attention to the support zones, as these levels could present excellent buying opportunities. A bounce from these areas might indicate the start of a new rally, so it’s time to prepare and fill your bags.
Scalpers: Be mindful of the resistance zones. The price may spike slightly before retesting lower levels, providing potential shorting opportunities. Watch closely for a "soft" or "hard" landing around 50K-48K.
Caution: Bull Trap Alert
If Bitcoin encounters a pump in the near term, be cautious about falling into a bull trap. All signs currently point to a retest of the 50K and 48K zones as highly probable, so don’t get caught up in premature optimism.
Key Support Zones to Watch:
Crucial Support Zone 1: The first line of defense. If Bitcoin holds here, we could start seeing signs of bullish momentum returning.
Crucial Support Zone 2: A deeper level of support. Breaking below this zone could lead to a more extended bearish trend.
In the event that these levels are broken and confirmation bearish candles start forming, we could see Bitcoin testing 42K, 40K, and even 36K in the weeks ahead. However, if Bitcoin holds these zones and begins to print higher highs (HH) and higher lows (HL), it would be an early sign that the downtrend might be over.
Also an important element in this setup is the 100-day EMA, which aligns perfectly with Crucial Support Zone 2. This adds a layer of confidence that the price may find strong support here. The confluence of the 100-day EMA with this key support level suggests that a touch of this zone could trigger the next major move, potentially kickstarting a rally.
Strategy for Traders:
Swing Traders/Spot Traders: Pay close attention to the support zones, as these levels could present excellent buying opportunities. A bounce from these areas might indicate the start of a new rally, so it’s time to prepare and fill your bags.
Scalpers: Be mindful of the resistance zones. The price may spike slightly before retesting lower levels, providing potential shorting opportunities. Watch closely for a "soft" or "hard" landing around 50K-48K.
Caution: Bull Trap Alert
If Bitcoin encounters a pump in the near term, be cautious about falling into a bull trap. All signs currently point to a retest of the 50K and 48K zones as highly probable, so don’t get caught up in premature optimism.
Disclaimer
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