The 50 EMA is above the 200 EMA indicating the classic Golden Cross, which gives us a bullish outlook.

At this moment, Bitcoin has bounced off the 50 EMA, crossed the short-term 21 EMA to the upside and now it is retesting this level.

This is also the level of the 0.23% Fibonacci retracement, taken from the start of the bullish run back on the 21 of July 2021 (as seen in the chart above).

We can also see how the price of Bitcoin tested the 0.38% Fibonacci retracement on the 7th and the 13th of September.

As the sentiment is generally bullish, it is reasonable to expect that the price will move up. It seems Bitcoin is destined to revisit it’s all time high.

There are many notable analysts and investment managers who recently announced that in their opinion the price of Bitcoin will reach $100,000 at the end of 2021.

Could that be true?

I really don’t know, but watching closely the rise of Solana for the last couple of weeks, I think anything is possible in the crypto world.

Let me know what you think.

A confirmed break from these lines of confluence can indicate a longer trend for Bitcoin.

Coupled with earlier analysis of head-and-shoulders pattern, one could assume that BTCUSD will succumb to bearish pressure and go lower.

There are other issues with Bitcoin, such as increasing transaction costs (currently completely unusable for any micropayments), network congestion, and disagreements as to further development, which seem to have a negative impact on the price.

On the other hand, Bitcoin future contracts will soon expire and overall, ‘the experiment’ has been semi-successful, but good enough to be accepted by Wall Street.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.

Head and shoulder pattern with a crossed neckline is usually a strong indication of a trend reversal that can last weeks or months.

Currently the price is still above the region of the neckline (line seen on the chart) but if the price closes below it, Bitcoin’s phenomenal uptrend might go into a reversal. Then it can drop much lower.

Here is the same head and shoulders pattern on the 4 Hour chart

If the price of Bitcoin goes lower, it’s likely that there is going to be some resistance near $11,000, as this was the lowest level of the most recent correction.

Technical price analysis is all about detecting specific price patterns and trends, but nothing is 100 percent certain.

Bitcoin price might also bounce off near the neckline and go up to test $20,000 again.

Cryptocurrency markets are quite unpredictable, especially Bitcoin.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.

Looking at the Daily Bitstamp chart of Bitcoin, we can see that in the last 4 days of trading BTCUSD has suffered some losses. From it’s high at 19,700 the currency dropped 21.80% to the low of $15,400 yesterday.

 This bearish sentiment could be attributed to many factors. No asset in the world will ever keep going up vertically. The markets would never allow it, as there will always be traders who are willing to enter short positions.

A drop of about 22% is still not a major move for Bitcoin and if you happen to be a Bitcoin holder, this is definitely not the time to go into a panic mode.

Today BTCUSD seems to be regaining some strength and will possibly reverse some of the losses in the upcoming days of trading.

Possible causes for Bitcoin’s correction

Pinpointing a single cause of this correction is very difficult as market corrections are inevitable. Corrections usually take place amid new negative news, which Bitcoin has seen quite a bit in the last couple of days.

News ranging from articles about Bitcoin Cash replacing it’s Bitcoin ‘mother’, higher transaction costs and network congestion due to high demand, short contracts in Futures trading, recent hacks of exchanges, these will all play a part and reflect in the market price of Bitcoin.

Note. This post is for educational and entertainment use only and it is not an invitation to trade. Trading involves high risk to your capital.