With No Momentum Shift Possibility For a Death Cross Is Real!

With No Momentum Shift Possibility For a Death Cross Is Real!
BTC/USD COINBASE:BTCUSD
smaniscalco

Hey Friends!

September was a tough month for Bitcoin . The famous cryptocurrency reached a high of nearly $11K before the end of the month’ plunge down to $7,700.
Over the past days, the first days of October, we saw Bitcoin price trying to recover in a continues consolidation between the marked descending trend-line on the 4-hour chart and $8,200 from below.

This seems like another mini bearish triangle. These kinds of formations tend to breakdown; however, there’s always the possibility to overcome the mentioned descending trend-line, along with the next serious obstacle which is the 200-days moving average line which is close by.

Another thing to note is that if there won’t be any momentum shift, the possibility for a Death Cross becomes real.
The last takes place when the 50-days moving average line crosses below the 200-days line and is considered a very bearish sign.
In contrast, the inverse cross, which is named Golden, took place last March, while Bitcoin was trading under $4,000.
Not long afterwards, Bitcoin started its massive 3-month move towards the 2019 high at $13,880.

Key Levels to Watch

I. Support/Resistance:
As mentioned, Bitcoin is now facing the mid-term descending trend-line on the 4-hour chart. The next target is the MA-200 (200-days moving average, marked in light green on the daily chart ), currently sitting around $8,480. Many see the MA-200 as the distinguish between the Bear and Bull market.

Further above is $8,750 – $8,800 resistance area , which contains the 38.2% Fibonacci retracement level. The next resistance lies at $9,000, whereas the real test for Bitcoin bulls is located at $9,400 – $9,500 which contains the ascending trend-line (of the famous 2019 bearish triangle which got broken recently, shown on the daily chart ) along with the 61.8% Fibonacci retracement level (the “Golden Fib”).

From the bearish side, the first significant support level lies at $8200, before the $8,000 level. Below, the low of September at $7,700 is maybe the most short-term significant support. In case of a breakdown, Bitcoin will likely to quickly see $7,500 and $7200, which is also the Fibonacci level of 61.8% since reaching the 2019 high last June.

II. The RSI Indicator (Daily): Nothing new is coming on behalf of the RSI . The indicator is sitting on the border between the bearish territory to the neutral one (30). However, the Stochastic RSI oscillator had made a crossover and moving now in the neutral area, which might give some fuel to break above the critical resistance.

III . The Trading Volume: Since the huge breakdown a week ago, the total volume is declining over time. As of writing this, yesterday seems like the dull days of the first two weeks during September. This setting probably indicates a short-term coming up move.