Bitcoin (BTC) recovered its weekly shut losses on Aug. 28 as threat belongings rose on Chinese tax cuts.
BTC price 200-week EMA stands out as support
BTC/USD managed $26,226, marking its highest degree since Aug. 25 and absolutely compensating for the weak point seen in a single day.
News that China had minimize tax on inventory buying and selling by 50% appeared to buoy U.S. futures into the open. The S&P 500 and Nasdaq Composite Index subsequently opened up 0.6% and 0.7%, respectively.
$BTC nonetheless in a 3 day composite however has proven indicators of absorption under. I want it was liquid sufficient just like the ES or NQ to easily justify saying “Hold 26.1 and people singles at 26275 get cleaned up”
Strong drive off the open for shares.
It’s Monday, so not seeking to do something… pic.twitter.com/6ObqBLIx5z
— HORSE (@TheFlowHorse) August 28, 2023
Eyeing the buying and selling panorama for the approaching week, Michaël van de Poppe, founder and CEO of buying and selling agency Eight, flagged the 200-week exponential shifting common (EMA) at round $25,700 as a key support zone to guard.
“First of all, the 200-Week EMA lies beneath us. It’s at $25,650 (Bitstamp) or $24,750 (Binance). The conclusion is, you don’t want to drop beneath that level and you’d preferably want to mimic 2015-2016 sideways period,” he wrote in a part of a put up on X (previously Twitter).
“If the 200-Week EMA sustains, conclusions are that we’re bottoming out here and we are potentially getting a massive entry point. If it’s lost, I’d be looking at a case of $19,500-21,500 as the next big entry point and final capitulation. On the lower timeframes and over the week, it’s still possible to sweep below the 200-Week EMA. As long as we don’t lose the level.”
Van de Poppe continued that order ebook liquidity “most likely” resided under the 200 EMA.
“In that regard, a sweep of that area is the most likely outcome,” he wrote.
“Two strategies can be deployed: 1 – Sweep at $25,750 for an aggressive long entry towards the other side of the range (entry can only be taken after the sweep and when $25,750 is reclaimed). 2 – Sweep of $25,200 towards $24,700-25,000 (the 200-Week EMA on Binance) and bullish divergences on higher timeframes. That’s the golden trade and could be the start of a reversal. However, $25,750 should be reclaimed in the bounce, otherwise this trade could be invalid/stopped out.”
Popular dealer Titan of Crypto in the meantime highlighted $25,900 as a distinguished zone of curiosity.
“$25,900 is the level to watch,” he summarized in a part of X evaluation.
#Bitcoin $25,900 is the extent to look at
Kijun at $25.9k supported the #BTC price as soon as extra on the weekly timeframe. That’s the extent to look at.
If it holds, I will not be stunned to see a pullback to Tenkan at round $28.4k. pic.twitter.com/VDcJQczDwc
— Titan of Crypto (@Washigorira) August 28, 2023
Bitcoin RSI stays “very low” for second week
Elsewhere, fellow dealer Pheonix referenced persisting low levels on Bitcoin’s relative energy index (RSI) on decrease timeframes.
As Cointelegraph reported, relying on the timeframe in query, these reached levels not seen in five years after the ten% BTC price dip ten days in the past.
“RSI still very low, for 1.5 weeks already now,” a part of their X commentary on Aug. 28 learn.
“7/8 instances it went under 25 the final years, corresponded to the (native) backside & a 30% minimal rise adopted.
Further evaluation confirmed the one exception to the rule coming in September 2019.
#Bitcoin RSI nonetheless very low, for 1.5 weeks already now
7/8 instances it went under 25 the final years, corresponded to the (native) backside & a 30% minimal rise adopted
Most typically $BTC gained extra % in worth
— Phoenix (@Phoenix_Ash3s) August 28, 2023
The RSI makes an attempt to measure when an asset is overbought or oversold at a given price level.
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