Bitcoin was consistently taking support from its 200 DMA curve and attempting a fresh high in each swing. However, after the September 07 fall, the sentiment attached with Bitcoin has turned into a profit booking mode. This shift in sentiment adds to the already existing selling pressure, and within days of the price action, BTC breaches another critical level.
Right now, there is swing support of $43550 active and looking strong. Previously, it has supported the buyers in taking BTC price back above $45000 levels twice since the September 07 Bitcoin price drop. Still, the current candle pattern and rising volumes seem like a repetition of the 7th September candle.
Despite all odds, Bitcoin is still the market leader with more than twice the valuation compared to the rank two holders, Ethereum. So when buyers are exiting with profit and prices are plummeting, should you hold your BTC investment or take advantage of the situation by buying more? The price analysis will provide a detailed walkaround of essential levels that can be used for buying BTC.
Bitcoin Price Analysis
Bitcoin, despite not being entirely positive, was trading in a narrow zone with an uptrend inclination. This zone gave away the selling pressure of crypto holders. However, the substantial rise in daily volumes over the last week indicates selling to continue.
Bitcoin has been the favorite cryptocurrency of major investors because of its wide acceptance, almost liquidated circulating supply, and a strong network of miners. So far, in September, Bitcoin has lost close to $9,000 in valuation and 19% from its recent peak of $52,948. The zone of $45,000 has proven its worth as a support level, but none of the pullbacks had the strength to reach new levels. At present, the 200 DMA was active at $46,000, while 100 DMA is still active at around $40,890.
These levels will be instrumental in predicting the further trading prospects of BTC in the near term. Retesting the 200 DMA levels as of now seems impossible, and one must brace for further downtrend. Another proven support level comes out to be at $37,500. The technical indicator of RSI is much more robust, with a histogram level of 40. If BTC undergoes a pullback from the 100 DMA curve, RSI will close towards oversold levels of 20.
According to our Bitcoin price prediction 2021, buyers should wait for some clarity and wait for BTC to take support from either of the three existing levels and make entry only after Bitcoin marks 5% positive gains in terms of the trend line and rising volumes.
BTC has been under tremendous selling pressure for the last few hours, with volumes exceeding 10 to 20 times of usual trading volumes. However, there has been a transaction volume of over 7,01,914 coins in the last 24 hours. The volume in the previous few hours ranges only in 1800 quantities. This price action shows profit-booking by institutional entities that have induced a selling pressure on BTC.