Let’s dive into where Bitcoin’s been over the past week and what might be coming next. I’m going to show you two charts we’ve been tracking.
📉Chart 1: Tracking the Trend Since March
Since March, Bitcoin has been in a steady downtrend, marked by lower highs and lower lows. However, about a week ago, we flagged a potential bottom after hitting a significant low on August 5th. The key question was whether we’d see a higher low after that, signaling the start of a trend reversal. On September 6th, we did, in fact, get that higher low, which is the first sign of a potential shift in direction.
But for a true reversal, we need confirmation in the form of a higher high. As of now, we’re still waiting for that higher high, which I’ve highlighted on the chart (around $65,000). The Stochastic RSI is approaching overbought levels, so we may see a correction soon. Ideally, this would happen after hitting that higher high to confirm the reversal.
📈Chart 2: Sideways Action Throughout the Summer
The second chart shows the sideways action we’ve been experiencing, which has been the foundation of my summer trading strategy. I mentioned I’d stay bullish as long as Bitcoin remained above the orange box, and so far, it’s held up.
If we do get that higher high and then a correction, I’ll be looking to go long on a dip back toward the red box. It’s all about sticking to the plan. Once again, the Stochastic RSI is overbought, so a correction is likely. However, I’m watching for enough upward momentum to give us that higher high before any pullback.
💡Final Thoughts
As always, Bitcoin’s movements tend to guide the rest of the market, so keeping a close eye on BTC’s price action is crucial for understanding the bigger picture. Stay prepared for both bullish and bearish outcomes, and have a plan ready for whichever direction we head next.
Stay safe and trade smart!
📉Chart 1: Tracking the Trend Since March
Since March, Bitcoin has been in a steady downtrend, marked by lower highs and lower lows. However, about a week ago, we flagged a potential bottom after hitting a significant low on August 5th. The key question was whether we’d see a higher low after that, signaling the start of a trend reversal. On September 6th, we did, in fact, get that higher low, which is the first sign of a potential shift in direction.
But for a true reversal, we need confirmation in the form of a higher high. As of now, we’re still waiting for that higher high, which I’ve highlighted on the chart (around $65,000). The Stochastic RSI is approaching overbought levels, so we may see a correction soon. Ideally, this would happen after hitting that higher high to confirm the reversal.
📈Chart 2: Sideways Action Throughout the Summer
The second chart shows the sideways action we’ve been experiencing, which has been the foundation of my summer trading strategy. I mentioned I’d stay bullish as long as Bitcoin remained above the orange box, and so far, it’s held up.
If we do get that higher high and then a correction, I’ll be looking to go long on a dip back toward the red box. It’s all about sticking to the plan. Once again, the Stochastic RSI is overbought, so a correction is likely. However, I’m watching for enough upward momentum to give us that higher high before any pullback.
💡Final Thoughts
As always, Bitcoin’s movements tend to guide the rest of the market, so keeping a close eye on BTC’s price action is crucial for understanding the bigger picture. Stay prepared for both bullish and bearish outcomes, and have a plan ready for whichever direction we head next.
Stay safe and trade smart!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.