Bitcoin technical analysis 2.9.2020: Consolidation seems likely

bitcoin-analysis

Bull trend continues strong, but a consolidation near the highs before more up is the most likely scenario from here. Let me explain why.

On the weekly chart we see that weekly closed green with a small candlestick body. There are now three of these candles with small bodies in a row and the next one will be fourth, if the consolidation continues. Consolidation near the top is bullish, especially since the top doesn’t have any wick, meaning there wasn’t strong over buying (FOMO).

On previous analysis I wrote:

“If the price hits this week the big yearly open resistance while the RSI is above 80 or even better above 85, then we may need a breather. This would probably mean quick retrace to $10-10.5k level.

If we rise slower to the 2018 yearly open, then there won’t necessarily be any kind of deep retrace, but price probably just consolidates little bit before breaking the yearly open and then rise will likely accelerate to $18k-20k before a deeper retrace. In this case retrace would likely be to 2018 yearly open.”

Price did not hit that big resistance 2018 yearly open that week, but instead we have been just consolidating. I’m beginning to doubt, if the 2018 yearly open at $13880 will be that big of a resistance.

I’m starting to think that once this consolidation is over we will keep going up until we get too much over buying and then we will see fast sharp correction. Weekly RSI (at the bottom of the chart) would have to be over 80 and also daily RSI would have to be very high.

This would possibly mean strong buying until $17k-20k is reached and then sharp correction to test the 2018 yearly open at $13880.

On the first strong move up from the bear market bottom at $3.1k to $14k daily RSI did not go much below 50 level. That was hit last week so maybe this consolidation is over now and we can keep going up.

Nothing hints to me that this could be a big top and we would start going down a lot from here. The bull trend is strong and most likely it isn’t going to end anytime soon.

Why bitcoin is one of the best investments in the world today and why technical analysis works (simply explained)

Related articles

Start the discussion

guest
0 Comments
Inline Feedbacks
View all comments
Tilaa uutiskirjeemme
Haluatko kuulla ensimmäisten joukossa tuoteuutuuksistamme, saada super hyper erikoistarjouksia sekä oppia kryptovaluuttasektorista lisää eksklusiivisten markkinaraporttiemme kautta? Haluaisimme lähettää sinulle sähköpostia silloin ja tällöin – ei kuitenkaan liian usein – eli jos haluat päästä etuihin kiinni, täytä tietosi alapuolelle. Pysytään yhteyksissä! Oletko jo Coinmotionin käyttäjä? Voit muuttaa tilaustasi myös tilin asetuksissa.
Tilaa uutiskirjeemme täyttämällä tietosi
Lisätietoja tietojen käsittelystä löydät tietosuojalausekkeestamme
Suscríbete al boletín de noticias de Coinmotion
¿Quieres ser el primero en enterarte de nuestras novedades, recibir ofertas mega buenas y aprender más sobre el sector de las criptomonedas a través de informes exclusivos de mercado? Nos gustaría enviarte un email de vez en cuando – no demasiado a menudo – así que por favor rellena tus datos abajo. ¡Estamos en contacto! ¿Ya eres usuario de Coinmotion? Puedes gestionar tu suscripción a través de la configuración de la cuenta.
Suscríbete ahora rellenando tus datos aquí
Responsable del fichero: Prasos Oy. Finalidad: envío de información sobre productos y servicios propios al suscrito. Legitimación: consentimiento. Destinatarios: No se comunicarán los datos a terceros. Derechos: acceder, rectificar y suprimir los datos, así como otros derechos, como se explica en la información adicional. Puede consultar información adicional y detallada en nuestra Política de Privacidad.

Subscribe to Coinmotion Newsletter

Would you like to be the first one to hear about our product updates, receive super hyper special offers and learn more about cryptocurrencies through our exclusive market reports? We are happy to send you an email every now and then – not too often – so please fill your information below. Let’s stay in touch!

Are you already a Coinmotion user? You can also manage your subscription via account settings.

Subscribe now by filling your details here

Responsible for the file: Prasos Oy. Purpose: sending information about own products and services to the undersigned. Legitimation: consent. Recipients: The data will not be communicated to third parties. Rights: access, rectify and delete data, as well as other rights, as explained in the additional information. You can consult additional and detailed information in our Privacy Policy
Subscribe to Coinmotion Newsletter
Would you like to be the first one to hear about our product updates, receive super hyper special offers and learn more about cryptocurrencies through our exclusive market reports? We are happy to send you an email every now and then – not too often – so please fill your information below. Let’s stay in touch! Are you already a Coinmotion user? You can also manage your subscription via account settings.
Subscribe now by filling your details here
Responsible for the file: Prasos Oy. Purpose: sending information about own products and services to the undersigned. Legitimation: consent. Recipients: The data will not be communicated to third parties. Rights: access, rectify and delete data, as well as other rights, as explained in the additional information. You can consult additional and detailed information in our Privacy Policy