Bitcoin is holding firm above $10,000, and it even reached levels over $12,000; that is quite a comeback after having fallen to as low as $3890 back in March, at times when markets were shaken by global lockdowns measures.
The technical outlook still shows the trend pointing to the upside, but the rejection from above $12,000 sent some warning about difficult times ahead for the rally. However, if the price rises and holds above $12,000, then more gains should be on the cards.
The bullish tone remains intact, but if a downward correction gains momentum, key support levels stand at $10,500 and $9,500. The latter could attract buyers, favouring a rebound. In the case of a steeper slide, $8,900 looks like a level for a nice bounce to the upside.
Looking at the weekly chart, a close above $12,600 in BTC/USD would be a very positive technical development in the medium-term that would likely clear the way to more gains and a potential consolidation at higher levels.
Looking good but still volatile
Bitcoin held relatively well during the sharp correction in gold prices that took place on August 11-12. BTC/USD did drop but much more moderately. Could that be a sign of maturity? Perhaps it is too soon to say. Despite holding near the top and firmly above $11,000, volatility still remains elevated in BTC trading.
Volatility won’t likely go away. Not only because of the recent rally in Bitcoin but also because in general, financial markets are set to hold on to wild rides in the short-term against a backdrop of equities rising too far too fast, fears of a potential bubble, economic uncertainty, US presidential elections, US/China tensions, Brexit, OPEP+, extra-extraordinary stimulus, worst and best GDP quarter… and also the COVID-19 pandemic.
September usually is a month of surprises for markets. For Bitcoin, it has not been a good month in the past: the cryptocurrency has fallen in every September of the last three years. Will it break the streak or take the necessary pause before heading to…?