Bitcoin traders pinpoint support levels as BTC price taps $26.2K

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Bitcoin (BTC) recovered its weekly shut losses on Aug. 28 as threat belongings rose on Chinese tax cuts.

BTC/USD 1-hour chart. Source: TradingView

BTC price 200-week EMA stands out as support

Data from Cointelegraph Markets Pro and TradingView adopted a BTC price uptick into the day’s Wall Street open.

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.

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.”

BTC/USD annotated chart. Source: Michaël van de Poppe/X

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.”

BTC/USD annotated chart. Source: Michaël van de Poppe/X

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 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.

Related: September ‘crash’ to $22K? — 5 things to know in Bitcoin this week

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.

The RSI makes an attempt to measure when an asset is overbought or oversold at a given price level.

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This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.