Bitcoin price analysis for September 21-27: the coin is likely to move up to $12,000 in the next few days

Bitcoin remains bullish and on target to rise above $12,000 as long as it sustains above $10,700

Crypto enthusiasts were treated to a flurry of positive news last week, which further boosts the fundamentals of cryptocurrencies. Nasdaq-listed MicroStrategy added 16,796 Bitcoin to its earlier purchase of 21,545 Bitcoin. With the latest purchase, the company has now invested about $425m in Bitcoin, inclusive of fees and expenses.

In addition, cryptocurrency trading platform Kraken has become the first cryptocurrency firm to receive a US banking license. Initially, the bank will serve only US citizens but eventually, the company plans to take operations to a global level.

Jim Cramer, Mad Money host and co-founder of the financial news website The Street, said that he will invest about  1 per cent of his portfolio in Bitcoin because he believes that his children will not be comfortable inheriting gold but will feel comfortable with crypto.

This shows how Bitcoin is gradually replacing fiat currencies. Bitcoin’s price is likely to surge as more traditional investors realise that they are not only missing out on an excellent opportunity to protect wealth but also to grow it.

Is Bitcoin showing signs of having bottomed out? Let’s do the Bitcoin price trend analysis of the weekly chart to spot the critical levels to watch out for.

Bitcoin price technical analysis: weekly chart

Bitcoin resolved the indecision of the doji candlestick pattern with an up move last week. It rallied 5.62 per cent to close at $10,919.50. 

The bulls will now try to push the price above the downtrend line. If they succeed, it will indicate that the correction is possibly over. Above the downtrend line, a rally to $12,481.65 is likely.

Both moving averages continue to slope up gradually and the RSI has been sustaining above the 50 level, which suggests that the advantage remains with the bulls.

This positive view will be invalidated if the BTC/USD pair turns down from the current levels or from the downtrend line and plummets below the recent lows of $9,832.05. Such a move could drive away the bulls and keep the price subdued for a long time.

The Bitcoin price weekly analysis shows that the bulls have the upper hand. Can they build upon this advantage? Let’s do the BTC price analysis of the daily chart to find out.

Bitcoin price technical analysis: daily chart

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The bulls pushed the price above the overhead resistance on September 14 but they could not clear the hurdle at the 50-day SMA.

Since September 16, the pair has been sandwiched between the 20-day EMA and the 50-day SMA. This shows a balance in supply and demand. However, this tight range trading is unlikely to continue for long.

If the bulls can drive the price above the 50-day SMA and the downtrend line, the momentum is likely to pick up.

Conversely, if the bears sink the price below the 20-day EMA and the support at $10,616.25, a retest of $9,832.05 is likely.

How to trade Bitcoin this week

The trade suggested in the previous analysis triggered when the price rose above the $10,616.25 resistance. Bitcoin hit a high of $11,180.95 on September 19, just shy of the first target objective of $11,250.

Traders who hold long positions can consider booking partial profits if the bulls fail to push the price above the downtrend line. 

However, if the price closes (UTC time) above the downtrend line, the long positions can be held and the stops trailed higher as the price moves up. 

Anything can happen in trading, so traders should always protect their positions with a suitable stop-loss and not allow a profitable trade to turn into a loss.

Traders who missed out on buying above $10,616.25 can buy on a close (UTC time) above the downtrend line and keep a close stop-loss.  Bottom fishing should be avoided if the price dips below $10,500.  

FURTHER READING: Bitcoin explained simply: everything you need to know

FURTHER READING: Bitcoin vs Bitcoin Cash vs Bitcoin SV: the ultimate guide

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