Bitcoin Rebound Imminent? Graphical analysis

Bitcoin Rebound Imminent?  Graphical analysis

After the release of economic data in the United States on September 13, BTC registered a 9% drop. Despite this, several signs indicate that a rebound is imminent for itcoin (BTC). Among these signals, we can mention the bullish variation on the RSI and the gradual reduction of the volume. There is also the appearance of the “three drive” figure. For a broader view, BTC remains in the range between $18,800 and $25,000.

Bitcoin, imminent rebound: Some “beneficial differences”

According to analysis by Stratos_Trading on Twitter, some bullish divergences are visible on the bitcoin chart. Indeed on the M30 scale, the RSI clearly shows a bullish divergence that usually precedes a bitcoin rebound. This may not benefit investors in the long term. However, this is an interesting opportunity for day traders.

Added to this is volume that gets weaker with each new DIP. This shows that the sellers are losing more strength as the price falls. Together with the RSI that shows higher and higher lows, we can say that the sellers are starting to capitulate.

In addition to these bullish signals, there is also the “three drive” pattern. This is a recurring reversal pattern in the market. Together, all these signals create a “beneficial difference” that predicts a payback in bitcoin (BTC).

Bitcoin recovery
Bitcoin (BTC) / Dollar (USD) / source: Binance

BTC in range, but not for long?

What we saw earlier were signs of a bitcoin bounce on the scale of the M30. But with a broader view (daily), we can see that bitcoin (BTC) remains in the range between $ 18,800 and $ 25,000. This cryptocurrency is also following a 5-month old bearish trend. In his tweet, Captain Faibik suggests that if our friend BTC breaks this downtrend line, a move higher towards $28,000 is likely. This will be the perfect time to buy.

The second option he offers is a bearish scenario. According to him, the next DIP will be around $15,400, if the price breaks the support at $18,800.

At the moment, swing traders are struggling to find trading opportunities. For scalpers and day traders, they will be able to take advantage of this rebound in bitcoin in the short term.

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The Contribune Editorial Board

Cointribune’s editorial team unites their voices to express themselves on topics specific to cryptocurrencies, investment, the metaverse and NFTs, trying to answer your questions in the best possible way.

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