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bitcoin is holding firm at press time. According to data from CoinMarketCap, the world's most valuable coin is trading above $63,500, stable over the past day and up a significant 7% from the previous trading week. Technically, the uptrend remains as long as prices remain above the support zone around $58,000 and $60,000.
bitcoin up 30% from August lows, RSI drops below 80% level on monthly chart
At press time, traders are optimistic and upbeat, which could form the basis for another rally. So far, since the early August crash, bitcoin is up 30% and has retested August highs around $65,000. However, there are high expectations that buyers will push prices above this level, marking another phase for confident bulls – a development on the monthly chart that is worth noting.
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Taking x, the analyst x.com/AxelAdlerJr/status/1838864880654299175″ target=”_blank” rel=”nofollow”>grades While the bulls are struggling to break above $65,000 and mark a new two-month high, the bullish momentum seems to be fading. At the time of writing, the relative strength index (RSI) on the monthly chart is falling, and recently fell below 80%.
<img data-recalc-dims="1" decoding="async" class="aligncenter size-full wp-image-644585" src="https://technicalterrence.com/wp-content/uploads/2024/09/Bitcoin-Capped-Below-65000-as-RSI-Dips-Below-80-on.jpeg" alt="bitcoin RSI drops on the monthly chart | Source: @AxelAdlerJr via x” width=”1024″ height=”576″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/09/GYT13H_XAAAtfbq.jpeg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” loading=”lazy”/>
Typically, the area between 80% and 100% marks the upper boundary of the oscillator, indicating that the currency is overvalued or in overbought territory. With the RSI falling, it can be interpreted that the bullish momentum is on the downside, which is a net negative factor for the bulls.
Since this is shown on the monthly chart, it could have serious implications on the daily and lower time frames. It may indicate that cracks are forming and that sellers may be preparing to push lower, especially if the bulls fail to break above $65,000.
There is hope, btc price is likely to rise when prices break above $73,000
As bearish as it may seem, there is hope. The analyst notes that although the RSI is below the 80% mark, this is not the first time this has happened. On multiple occasions, bitcoin prices have consistently recovered when the RSI falls to this level. However, this does not happen all the time.
As this is worrying, traders should keep a close eye on how the price action develops in the coming days. A drop towards the $60,000 mark would pour cold water on the current momentum, signalling the start of a possible correction.
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Even with this outlook, the analyst is optimistic. In a separate post, the analyst said that if bitcoin recovers from the weakness and climbs towards $73,000, the coin can rally strongly. When this happens, the analyst x.com/AxelAdlerJr/status/1838857275768799277″ target=”_blank” rel=”nofollow”>wait a new influx of fresh liquidity, especially in the futures market.
In turn, the inflow could push prices to new levels, perhaps even above all-time highs. Anyway, before this happens, btc needs to gain momentum. This rise will happen, especially if there is a decisive close above the $65,000 resistance line.
Featured image by DALLE, chart by TradingView
