Bitcoin price formed a firm bottom on June 30 at $19,230, which was followed by a 31% ascent that set up a swing high at $25,205. After that, an exhaustion of the move’s momentum combined with investors booking profits, saw markets turn around and resulted in a 27% crash that formed another bottom at $18,210 on September 19.

These lower lows might indicate a bearish outlook, but the Relative Strength Index (RSI) shows that whilst price was falling it was rising, indicating a bullish divergence. This technical formation reveals a lack of selling pressure and can be a signal the market will reverse and start moving higher.

As sellers lose steam, Bitcoin price will reflect what can be already seen in the momentum - a bullish resurgence, triggering a run-up. The resulting move could push BTC up by 20% before encountering the 200-weekly Simple Moving Average (SMA), which is the most significant hurdle.

If the momentum is strong enough to flip this blockade, Bitcoin price could reach the next resistance level at $29,563. This move would constitute a 48% gain from the current position and is likely where the upside is capped for the big crypto.

While the three-day chart for Bitcoin price shows signs of bullishness, the quarterly chart less so. Instead, it reveals two important barriers:

A resistance area, from $27,734 to $29,296.

From a macro outlook, the support block has been extremely helpful in assisting buyers and absorbing the incoming selling pressure. Therefore, the possibility of a bounce from the current position to $29,296 makes logical sense and also aligns with the narrative detailed above.

Furthermore, a flip of the resistance area could allow Bitcoin price to extend its gain from 48% to 68% as it retests the Fair Value Gap (FVG), aka imbalance, at $32,950.

Awaited Breakout on BTCUSD Awaited For Long Term Positions.

Sep 30 2022