In the early American session, the price of Bitcoin (BTC / USD) is falling sharply below the SMA of 21 located at 47,000. It is also breaking the key support of 6/8 of murray located at 43,750. The 200 EMA located at 41,697 is likely to act as good support and there could be a technical bounce around this level.
Since the fall of September 7, BTC has not been able to recover to the psychological level of 50,000. It has made several attempts to consolidate above the SMA of 21 but failed. End each time it approached this moving average, sellers took control or short-term buyers liquidated their buying positions.
Technically, we can see that a bearish pennant pattern has been formed. This pattern is a sign of a further bearish trend. So, the price could reach the level of 41,697 in the short term. If the bearish force prevails, it could reach the key support of 37,500 (4/8).
On July 25, BTC broke the 200 EMA. After consolidating above this moving average, a new bullish wave began, which took the price to the high of 52,857. Now the only support that BTC has is this moving average. The 21 SMA now exerts downward pressure. If the price comes to test and if it manages to bounce above it, it will be a good opportunity to buy with targets at 47,000 and up to the 50,000 level (8/8).
On the contrary, a daily close below the EMA of 200 located at 41,697 will be a sign of the beginning of a bearish scenario so that the price could reach the level of 37,500. If the panic takes hold in the market, BTC tumble to the psychological level of 30,000.
Therefore, the key is to buy above the 200 EMA and sell below the 21 SMA. We believe that BTC is set to trade sideways in the coming days according to the daily chart. The eagle indicator is showing a bearish signal, we must wait for a break below 41,600 to be able to sell with targets at 37,500 and 30,000.
Support and Resistance Levels for September 20 - 21, 2021
Resistance (3) 46,875
Resistance (2) 45,624
Resistance (1) 44,314
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Support (1) 43,750
Support (2) 41,121
Support (3) 40,625
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Trading tip for BTC for September 20 - 21, 2021
Buy if Bitcoin rebounds at 41,697 (EMA 200), with take profit at 47,000 (SMA 21), stop loss below 41,000.
The material has been provided by InstaForex Company - www.instaforex.com