Trading Signal for BITCOIN for August 30 - 31, 2021: Sell Below $48,335 (SMA 21)

analytics612cf4d6a9861.jpg

The price of Bitcoin in 4-hour charts was moving below the 21-day SMA (48,335), consolidating below the psychological level of 50,000. The market volume has contacted. This apparent strength could cause a sharp decline or it could boost demand for a new bullish wave to the zone of 56,250 (+2/8).

However, we note that the downward pressure is increasing. BTC is now below the 21-day SMA that could be a negative sign and a drop to the 44,712 support could occur, where the 200 EMA is located.

While the overall trend remains bullish and unchanged, investors should note that a break below 44,712, the key level of the 200 EMA, will put the bulls in a difficult situation, and BTC could start a new bearish wave with targets up to 37,500 (4/8).

On the contrary, in case of a break and consolidation in daily charts above the psychological level of 50,000, BTC is likely to rise to +2/8 of murray located at 56,250. The eagle indicator is showing a low trade volume and a correction could be looming.

The 4-hour chart gives us a signal that BTC could fall to the 200 EMA in the next few hours because the 21 SMA is pressed down. Investors are waiting for new lows to buy BTC again. So, a good chance to buy will be around 44,712 (200 EMA).

The technical reading of the eagle indicator, that measures the strength and volume of the market, is at a point of 10. It means that the market lacks enough volatility to break the high of 50,000 or break the low of 44,000 is in a range-bound market.

Support and Resistance Levels for August 30 - 31, 2021

Resistance (3) 50,567

Resistance (2) 49,698

Resistance (1) 48,480

----------------------------

Support (1) 46,801

Support (2) 45,932

Support (3) 44,712

The material has been provided by InstaForex Company - www.instaforex.com

Pages