When Bitcoin reached the 52,000 level it was touching the 61.8% Fibonacci line. In our technical analysis, we pointed out the imminent fall below this level, we invite you to read this article and find out some tips on this strategy.
On Tuesday during the American session, we saw a strong correction of Bitcoin from the high at 52,400 to the 6/8 support of murray around 43,750, almost a 20% loss in one day. Over a few hours, BTC was bouncing above 43,750 that is going on until now.
The 200 EMA located at 47,365 has now become its top for BTC, since July 25 Bitcoin had consolidated above the 200 EMA, now it is below it, which represents a bearish signal, and there could be a decline to the 5/8 Murray support which is also the psychological 40,000 level.
Our outlook will remain bearish as BTC trades below the 21 SMA (50,000) on a 4-hour chart, targeting 43,750 and up to the 5/8 murray line around 40,650. The eagle indicator is showing a sign of a technical rebound.
The cryptocurrency market is now more cautious. Apparently, there is some fear in small investors, because if the BTC does not manage to recover the 20% loss, some will take profits or liquidate their positions, which could add the bearish pressure to BTC price and other cryptocurrencies.
Support and Resistance Levels for September 08 - 09, 2021
Resistance (3) 49,878
Resistance (2) 48,125
Resistance (1) 47,566
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Support (1) 44,668
Support (2) 42,914
Support (3) 39,268
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Trading tip for BTC for September 08 - 09, 2021
Sell below 47,200 (EMA 200), with take profit at 43,750 (6/8), and 40,625 (5/8), stop loss above 48,200.
The material has been provided by InstaForex Company - www.instaforex.com