Bitcoin: is the $58-60K sustainable?
Decreased US inflation supported positive investor’s sentiment during the previous week. Although the US equity market benefited the most, still the increased investor’s interest for riskier assets, supported also the crypto market. During the week BTC was struggling to sustain the 58K level, however, Friday's trading session brought BTC back to the 60K resistance line. At this moment the question is if BTC can sustain these levels and move higher, or the reversal should be expected in the coming period?
The RSI started a clear path toward the overbought market side. The indicator crossed the line of 50 and ended the week at the level of 55. Based on the indicator, there is still space for BTC to move to the higher grounds until a clear overbought side is reached. At the same time, MA50 is diverging further from its MA200 counterpart, after a so-called dead cross was formed in August.
The week ahead is going to be a volatile one. The side of trading on financial markets would depend on the outcome of the FOMC meeting, which is scheduled for September 19th. As per current charts, there is a tricky moment for BTC. On one side, indicators are showing the potential for higher grounds. However, the potential is for levels around 61K, and lower potential for the 63K, which is the long term resistance line for BTC. On the opposite side, there is currently a higher potential for a short reversal. The BTC might use the week ahead to test the 58K support line for one more time.
The RSI started a clear path toward the overbought market side. The indicator crossed the line of 50 and ended the week at the level of 55. Based on the indicator, there is still space for BTC to move to the higher grounds until a clear overbought side is reached. At the same time, MA50 is diverging further from its MA200 counterpart, after a so-called dead cross was formed in August.
The week ahead is going to be a volatile one. The side of trading on financial markets would depend on the outcome of the FOMC meeting, which is scheduled for September 19th. As per current charts, there is a tricky moment for BTC. On one side, indicators are showing the potential for higher grounds. However, the potential is for levels around 61K, and lower potential for the 63K, which is the long term resistance line for BTC. On the opposite side, there is currently a higher potential for a short reversal. The BTC might use the week ahead to test the 58K support line for one more time.
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