On 1 September, in the article Bitcoin Price Chart Analysis: Are the Bulls Lifting Their Heads?, we:
→ drew a long-term upward (blue) and short-term downward (red) channel;
→ highlighted a series of bullish signals and suggested that the price could climb towards the median of the red channel.
Indeed, since then Bitcoin’s price has not only reached the median of the red channel but has also moved into its upper half. Since the start of the month, the leading cryptocurrency has gained more than 5%.
Why Is Bitcoin Rising?
The main factors include:
→ Expectations of US Federal Reserve rate cuts, which create favourable conditions for risk assets.
→ News of a strategic partnership between Nasdaq and crypto exchange Gemini.
→ Inflows of corporate investment. For example, Metaplanet announced plans for large-scale Bitcoin purchases.
→ Reduced regulatory uncertainty has also played an important role, with SEC leadership statements in support of innovation being welcomed by the market.
Technical Analysis of the BTC/USD Chart
The chart suggests that Bitcoin’s price is still in a corrective phase (marked by the red channel) within the broader uptrend. In other words, we may be “inside” a bull flag pattern, with the potential for renewed growth within the blue channel in the coming weeks.
From a bullish perspective:
→ demand is showing strength, as the price has reached its highest level since 24 August;
→ higher highs and higher lows form a steady upward trajectory, marked by orange lines, with the lower one potentially continuing to act as support in the coming days;
→ the red median, once broken, may now serve as support, along with the former local resistance at $113,113.
From a bearish perspective, Bitcoin’s price has approached key resistance levels:
→ the upper boundary of the red channel;
→ the psychological mark of $115,000;
→ the 50% retracement level of the A→B impulse, around $116k.
Taking the above into account, we could assume that the bulls still hold the upper hand, though their momentum may be weakening. We might see BTC/USD consolidating near the $115k level, with a decisive shift in sentiment potentially occurring next week, when several central banks are set to announce interest rate decisions.
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