Bitcoin Price Weekly Outlook
Bitcoin price closed last week at $115,333, failing to break through the $118,000 resistance level. Despite the U.S. Federal Reserve cutting the key interest rate by 25 basis points as expected, Bitcoin bulls lost momentum after a three-week rally. The Fed’s rate cut was not enough to push Bitcoin past $118,000, resulting in a shooting star doji candle at the week’s close, indicating a potential reversal in price action for the upcoming week. The bears have stepped in to limit Bitcoin’s gains, and we may see renewed strength from them as they aim to test recent support levels.
Key Support and Resistance Levels Now
Looking ahead, the $111,300 level is being monitored as a potential support level for Bitcoin. The price nearly reached this support level after a significant sell-off on Sunday night. Below $111,300, the 21 EMA at $109,500 will come into play. A close below the 21 EMA could lead to a test of the $107,000 support level, with $105,000 acting as the next key support level.
Despite crashing through the $113,800 support level on Sunday night, Bitcoin needs to close above this level to strengthen the bulls for the week. The next resistance level is at $115,500, which needs to be established as support to make another attempt at breaking the critical $118,000 resistance level.
Outlook For This Week
Bitcoin experienced a sharp sell-off after the weekly close on Sunday night, dropping to $111,800. This rapid correction could signify a bullish environment, suggesting that the week’s low has already been reached. However, if this is the start of a new downtrend, a slight bounce followed by continued bearish price action could be expected. To maintain a bullish bias, Bitcoin needs to reclaim the $113,800 level, while bears will aim to push the price below $111,300 to establish a bearish bias.
Market mood: Bearish – The shooting-star doji candle at the $118,000 resistance level indicates bearish control for now.
The Next Few Weeks
Looking ahead, Bitcoin aims to establish a higher low on the weekly chart to signal a potential bullish reversal. The MACD oscillator remains slightly bearish since the end of August, providing support for the bears to keep the price in check. Bulls will be monitoring the MACD for a bullish crossover in the coming weeks to gain strength and overcome the $118,000 resistance level.
Terminology Guide:
– Bulls/Bullish: Buyers or investors anticipating price increases.
– Bears/Bearish: Sellers or investors expecting price declines.
– Support or support level: A level where the price is expected to hold initially.
– Resistance or resistance level: A level likely to reject the price initially.
– EMA: Exponential Moving Average, giving more weight to recent prices.
– Oscillators: Technical indicators fluctuating within set levels.
– MACD Oscillator: Moving Average Convergence-Divergence, indicating trend and momentum changes.
Overall, Bitcoin faces a challenging week ahead as it navigates key support and resistance levels, with market sentiment leaning towards a bearish outlook.