The $8,000 Gap – The price of Bitcoin (BTC) is now struggling to come back and sustain itself above $20,000. However, the bulls manage for the moment to defend essential levels, the rupture of which would be potentially catastrophic.
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Bullish reversal rather than three black crows
The price of bitcoin drops to $19,646 on Bitfinex today, September 5, 2022. The cryptocurrency is trading at $19,766 at the time of writing. Its price is currently recording a daily loss of 0.64%.
With the recent weekly close, bitcoin narrowly escapes to a “three black crows” type configuration over the period: three successive candlesticks in the red, each of which the opening price is below the previous one, and a close which has established a short-term floor.
A three black crows pattern would not only have confirmed the bearish reversal since the week of August 15th, but would also have heralded further downtrends.
By closing in the green above $20,000 and based on historical data, the Material Indicators platform underlines on the contrary, the existence of a ” Long position attempt on the weekly “. Theoretically, Bitcoin should therefore now rise again in the coming weeks.
Macro view: The danger of $8,000 for Bitcoin price
In the event that these bullish forecasts are invalidated for the next few weeks, Bitcoin could fall to levels which would then constitute the bottom of this cycle.
Crypto trader Tony shared a weekly chart of the price of Bitcoin, while highlighting the existence of a range over this time frame, which is delimited by the $2,800-$19,600.
Over the period, if the price of Bitcoin loses the $17,600-$19,600 area which constitutes the upper limit of this range, Crypto Tony estimates that it could fall until the equilibrium price around $8,000.
Until Bitcoin recovers the 200-week weekly moving average at $23,000, $17,600 is therefore now the key closing level to watch over the period.
The uncertainties certainly do not play in favor of the price of Bitcoin during this month of September, the cryptocurrency could thus lose big. The bulls must make the effort to recover the $20,000, and defend this symbolic level again, to avoid a break of essential supports followed by a fall which can bring the price of Bitcoin back to around $10,000.
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