Bitcoin May Rally If Bulls Jump Over This Hurdle

Last Updated: 5 September 2022

The bitcoin price has had a fairly boring weekend in which relatively little has happened. We are still barely below USD 20,000 and that does not seem to change in the coming period. However, according to the analyst anushsamal, there is a chance of a rally.

This is what needs to be done

If the bulls manage to push bitcoin above a specific price limit for an extended period of time, there is a possibility that we will start another rally. The major resistance currently seems to be around the psychological limit of USD 20,000.

Repeated rejections could theoretically push bitcoin back to $18,000. If the $20,000 can be recovered, then on the way up, the $21,600 is the next big hurdle for the bulls to overcome.

If that level is also overcome by the bulls, then bitcoin could theoretically start another rally. If that fails, however, the bears are likely to force bitcoin to $19,000. In that regard, it will be an exciting week for bitcoin.

Technical analysis

Bitcoin’s recent fall from $25,000 has made the market highly uncertain again. The bears have dominated the chart for months and the Relative Strength Index has also mainly remained below 0.5 in the past week, meaning there is a lot of selling pressure.

Bitcoin price also dipped below 20 SMA on the 4-hour chart, meaning the selling side of the market is in control and driving momentum. All in all, there is little hope for bitcoin technically. Multiple indicators are in a bearish zone and a lot needs to happen to turn that around.

On the other hand, we often see that everything turns around the moment the market reaches its darkest point. In any case, we seem to be close, although it remains to be seen whether the worst is over.

Author

  • Ivan came across the topic of cryptocurrencies in early 2016 and, as an author and enthusiast, has been intensively involved with the topics of cryptocurrencies, blockchain and STOs ever since.

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