Daily Report – Bitcoin and Market Update (September 12 2020)
Middaily is trading and oscillating around MA20 12h, confirming local 9800-10200 zone is enough demand to at least stop bearish pressure. Fact that there is such a strong upside push of momentum with simultaneous weak bounce on the support of price action may suggest short-term wise bitcoin is (JUST) starting to get slightly exhausted. It’s technically nowhere near full exhaustion, nor trading inside overbought area and due to correct. The way one should interpret such momentum-price correlation is that it may generate bearish hidden divergence in case bitcoin stays flat, with no upside breakout in the next days. It would be more surprising than not, accounting overall lack of retest after consolidation breakdown. Stochastic is diverging directionally against TK momentum histogram, which proves consolidative nature of the movement – more often than not, consolidation after strong thrust suggests short-term short positions taking profit in such case. It may be followed by further downside decline of price towards low-mid 9000s. The greatest importance will be brought by the upcoming weekly close and one should expect volatility peaking around this time.
MTF heatmap is showing clear strong influence zone for bitcoin 10250-10400. Whenever price action trades below it works as a resistance. When bitcoin trades above this zone it’s supposed to work as short-term demand zone inside which one could expect dips to be bought back. Volume profile of the entire decline 12k-9.8k suggests key strongest support is located at 10150. This volume spike suggests this was the exact price level at which most of the positions/contracts were closed because of either taking profits of shorts, or liquidating leveraged longs that were forced to close their positions. As long as bitcoin trades above MA50 the only average above is MA200 acting as a resistance at 11200-11300 zone. When combined with 11.6-11.7k heatmap resistance, it provides trades with key wide supply zone 11200-11700 in which short-term longs should take profit instead of holding through. Inside this supply area we could expect distribution of profits which in case of upcoming presidential elections for US may suggest increased volatility and/or downside pressure. Long-term perspective remains the same – bullish. More details in exclusive #video-report.
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