Crypto Technical Analysis

Bitcoin Technical Analysis: Supply on Exchanges Drop, Will BTC Price Surge High?

BTC technical analysis

Key Takeaways:

  • The Bitcoin(BTC) price closed the previous day’s trade at $19,796.84 with a market capitalization of $377.60 billion and a circulating supply of 19.14 million 
  • The star crypto is stuck up within a region for a week and failing to break out of consolidation, signifying the growing dominance of the bear’s
Current Price $19,802
Market Cap $379.07 million
Circulating Supply 19.14 million
Total Supply 21 million
Vol (24H) $31.68 billion
Change (7D) -2.92%

BTC Technical Analysis for September 2022

Bitcoin price from past a week has been heavily consolidating, while the resistance & support levels are constantly contracting. A significant move appears to be fast approaching as the asset may not withstand equal pressure from either side for a long time. Moreover, the bulls are also waking up slowly which displays incoming volatility. 

The BTC price with the next leg up may rise above $20,000 and try hard to sustain above these levels. Until the mid of September, the prices may remain heavily consolidated and try hard to maintain the lower support. Further by the end of the month, the BTC price could try hard to settle above $21,500 or in case of extreme bearish action, the price may be restricted below $20,600.

Technical Analysis at a Glance

Bitcoin price was pretty incremental after it flipped from the June lows. However, no sooner than the BTC price above $23,000, the bearish action slashed the price heavily. Additionally, the asset which formed constant higher highs & lows is now trading within a descending channel. Therefore, in the upcoming days, one can expect an extended accumulation and with a huge influx of liquidity, BTC price may range high, testing the higher targets.

Short-Term The Bitcoin price is trading within the safer zones as the volume has dried up to a large extent
Mid-Term The mid-term forecast is somewhat bullish as the price is expected to pull a significant leg up soon
Long-Term The BTC price appears to have attracted the buyers, but due to less volume, the asset still remains under bearish captivity

Technical Indicators & Pivot Levels

Indicator Value (STF/HTF) Action (STF/HTF)
Relative Strength Index(RSI) 47.61 / 33.44 Neutral / Sell
MACD -34.00 / -5234.5 Sell / Sell
Average Directional Index(ADX) 19.45 / 26.61 Neutral / Sell
Ultimate Oscillator 49.98 / 39.11 Neutral / Sell
Bull-Bear Power -81.66 / -6978.29 Sell / Sell

Pivot Levels

Moving Average Short Term Long Term
MA 5 $19,854.9 $21,060.9
MA 10 $19,848.6 $21,712.9
MA 20 $19,870.1 $24,841.0
MA 50 $19,986.4 $38,416.2
MA 100 $20,929.3 $38,531.3
MA 200 $22,230.8 $23,223.0

The market sentiments are slowly coiling up, but the BTC price continues to trade within the minor ranges. Hence no positive outlook may be expected now and in the coming days, as the indicators are also narrating the same story. Along with being bearish, the indicators also point toward an extended accumulation phase, as the asset appears to have lost its strength tremendously. 

The MACD & Bull-Bear power is heavily bearish in the long-term with the values heavily elevated. Therefore, one can expect the asset to be under bearish influence for a long time, which may be invalidated with only a hugely positive event in the crypto space. 

Additional Read: Bitcoin Price Prediction Weekly

Bitcoin On Chain Metric Analysis

  • The Bitcoin average difficulty which is a unit to measure the difficulty to mine new BTC has peaked high. Previously these levels spiked immediately after the market collapsed which was led by the LUNA crypto crash

BTC Technical Analysis

Source: Messari.io

  • The supply on exchanges has reached the bottom. Nearly around 9% of the total supply is held in the exchanges, while a huge volume is in circulation while some of them are locked in dormant accounts or may have got destroyed. 

BTC Technical Analysis

Source: Santiment

  • Whales holding more than 10K BTC but less than 1 million BTC have increased their accumulation, while the sharks holding 1000 to 10K BTC have let out their holdings to a large extent. 

BTC Technical Analysis

Source: Santiment

Bitcoin (BTC) Technical Analysis for Short Term

BTC Technical Analysis

Source: Tradingview

  • Bitcoin price is constantly trading within a descending triangle which is considered a bearish pattern that results in a notable price drain
  • The asset in the next couple of days is expected to continue consolidating within the triangle as the apex is much distinct
  • However, the BTC price may attempt to break the consolidation by testing the resistance above $20,000, but may again face a rejection
  • On the brighter side, the lower support may be respected as the bulls get triggered as the BTC price slips below $20,000

Bitcoin (BTC) Technical Analysis for Long-Term

BTC Technical Analysis

Source: Tradingview

  • Bitcoin price has been heavily bearish ever since the beginning of the yearly trade by forming constant lower highs & lows. 
  • Each time, the asset rejects the lower support, plunges and consolidates along the newly formed trend line which is slightly elevated. 
  • In recent times, the asset has broken the lower trend line and preparing to make a move to the lower support below $18,000
  • Therefore, a plunge may ignite a strong rebound later which may not be heavily fueled by the bulls as the buying pressure may be extremely less, indicating the resurgence of consolidation

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FAQs

Is Bitcoin bullish or bearish?

Bitcoin is bearish in all the time frames, displaying huge possibilities of reaching the lower support in the coming days

What is the current RSI for BTC?

The RSI for BTC in the short term is 47.61 while in the long term it is 33.44

Is it a good time to buy BTC?

Bitcoin is consolidating within predetermined levels and could break out of this range very soon. Therefore, it may be a good time to buy BTC.

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