Bitcoin: BTCUSD tests 7-Week uptrend as September wraps up
After three weeks of gains, Bitcoin (BTCUSD) kicks off the NFP week on a down note. It’s testing the 50-SMA support and approaching the lower end of its seven-week uptrend. Along with the US employment report for September, including the key Nonfarm Payrolls (NFP), Monday's speech by Federal Reserve Chairman Jerome Powell will be crucial for market watchers. Stay tuned!
Buyers are struggling to gain traction, while sellers are still holding back
Whether it's pre-event nerves or month-end consolidation, Bitcoin buyers are struggling to gain market acceptance as the key week begins. Bearish MACD signals and the price's inability to hold above the 61.8% Fibonacci retracement from July to August are tempting short-term sellers. However, a quick drop in the RSI (14) and strong support levels below make it tough for bears to regain control.
Technical levels to watch
In the short term, the bottom of the bullish channel around $64,050 is a key support level for potential sellers. Below that, the 200-SMA near the $60,000 mark acts as the last line of defense for buyers. If Bitcoin (BTCUSD) falls below $60,000, a gradual decline toward the monthly low around $52,500 could be on the horizon.
For a rebound, Bitcoin needs to break past the 61.8% Fibonacci retracement level at about $65,650. If successful, the monthly high of $66,500 and the upper boundary of the bullish channel around $68,900 will attract buyers. If Bitcoin moves past $68,900, it could quickly surpass $70,000 and aim for the yearly high of around $73,800 set in March.
Pullback in prices expected
Looking ahead, a potential bounce in the US Dollar and some price consolidation could lead to a pullback in BTCUSD. However, the overall bullish trend is likely to continue.
