Bitcoin price analysis (6-12 September): is $60,000 within reach?

Bitcoin remains bullish above $50,000

A basket comprising risk-off assets, such as gold, government bonds and bitcoin, has outperformed the S&P 500 index since the start of 2020, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence. One of the main reasons for this outperformance is the strong rally in bitcoin during the period. 

“Portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix. A macro risk-off decline is a primary threat for the crypto bull market,” McGlone said in the September edition of Bloomberg’s Crypto Outlook.

McGlone believes bitcoin is on target to hit $100,000. He is not the only one who is uber bullish on bitcoin. In a separate interview with Bloomberg, Michael Gronager, CEO of Chainalysis, said bitcoin could rise to $100,000 by the end of the year.

The sharp recovery in crypto prices and the strong outlook have resulted in several legacy finance companies adding support to cryptocurrencies. The latest to join the list is Franklin Templeton, with more than $1.4trn in assets under management. According to LinkedIn job postings, the asset manager has posted fresh job applications for mid-senior level crypto experts to lead its crypto trading and research openings.  

JPMorgan analysts have voiced caution after the strong recovery in crypto prices in August. “Cryptocurrency markets [are] looking frothy again,” the bank’s analysts said in a note on Wednesday, September 1. Markets Insider reported them as saying: “The share of altcoins looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.” 

Will bitcoin pick up momentum and make a dash toward the all-time high or will the rally falter at current levels? Read our bitcoin price trend analysis to find out.

Bitcoin price technical analysis: weekly chart

Bitcoin price weekly chart
Bitcoin price analysis 6-12 September 2021 – Credit: Currency.com

Bitcoin’s price recovered from $46,521.85 to end the week at $51,799.60, clocking a gain of 6.16% over the previous week’s closing price. The rally last week shows that the indecision of the Doji candlestick pattern has resolved to the upside.

If buyers sustain the price above the 61.8% Fibonacci retracement level of $51,056.35, the BTC/USD pair could rally to $60,000 and then challenge the all-time high at $64,919.10.

The upsloping moving averages and the relative strength index (RSI) in the positive zone suggest that bulls have the upper hand.

Contrary to this assumption, if bears pull the price back below $50,000, it will suggest that higher levels continue to attract aggressive selling. The pair could then drop to the 20-week exponential moving average (EMA).

This is an important level for the bulls to defend because if it cracks, the pair could decline to the 50-week simple moving average (SMA). The Bitcoin price weekly analysis shows the bulls are in command and the path of least resistance is to the upside. 

Bitcoin price technical analysis: daily chart

Bitcoin price daily chart
Bitcoin price analysis 5 September 2021 – Credit: Currency.com

Bitcoin’s price bounced off the 20-day EMA on 1 September and rose above $51,000 on 3 September. The bears pulled the price back below $50,000 on 4 September, resulting in an inside-day candlestick pattern.

However, sustained buying on 5 September has pushed the pair back above $51,000. Both moving averages are sloping up and the RSI is near the overbought zone, indicating that bulls are in control.

The pair could now rally to the resistance line of the ascending channel. The bullish momentum could pick up if buyers drive the price above the channel. A break and close below the 20-day EMA will be the first sign that bulls may be losing their grip. A deeper correction to the 50-day SMA may start if the $46,000 support cracks.

How to trade bitcoin this week

Bitcoin has broken above the psychological mark at $50,000. If buyers sustain the price above this level, the bullish momentum could pick up. The next target objective on the upside is a move to the resistance line of the ascending channel. This positive view will invalidate if the pair turns down and plummets below $46,000.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial advisor before arriving at a decision. 

Bitcoin to US Dollar
Daily change
58890.6
Low: 58308.6
High: 59115.1

Further reading

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