Bitcoin price wrapped up last week at $115,333, turning away from the $118,000 resistance level. Following three consecutive weeks of upward momentum, Bitcoin bulls have finally encountered a slowdown — and the Fed’s rate cut failed to push prices past $118,000. The U.S. Federal Reserve has lowered the key interest rate by 25 basis points as expected, giving markets a lift to finish the week, yet it fell short of expectations. On Thursday, Bitcoin price surged to $118,000 following the Fed’s announcement, only to be pushed back just below this crucial resistance level. Sunday’s close produced a shooting star doji candle for the week, indicating a potential reversal in price action as we move into this week.
The bears have decisively entered the arena, putting a cap on bitcoin’s gains following a robust 3-week rally by the bulls. This week could witness a resurgence of bearish activity as they strive to drive the price down to evaluate the recent support levels. As we analyze the market, the $111,300 level is being observed closely as a potential support level. Bitcoin came close to testing that support level following the significant sell-off on Sunday night. With bitcoin trading below $111,300, attention will shift back to the 21 EMA, currently positioned at $109,500 as we enter this week. If the price closes below the 21 EMA, it is unlikely the $107,000 low will hold, and we should look to the $105,000 level to act as support. On Sunday night, the price plummeted past the $113,800 support level. However, we anticipate that if bitcoin can close above this threshold, it may provide a boost of renewed strength to the bulls in the coming week. The upcoming resistance level beyond this point is $115,500. If we can successfully establish these levels as support, we will aim to make another attempt at the crucial $118,000 resistance level.
Bitcoin experienced a significant sell-off immediately following the weekly close on Sunday night, causing the price to plummet to $111,800. This action can be interpreted in two distinct ways. Rapid price corrections like this often occur in bullish environments, suggesting that the low this week may already be established. We could anticipate more bullish price action as the week progresses. The alternative scenario suggests that we may be witnessing the onset of a fresh downtrend. In this case, a minor bounce from the recent lows could be expected over the next day or so, succeeded by ongoing bearish price movements as the week concludes. To uphold a bullish sentiment this week, it’s essential for the price to reclaim the $113,800 mark. Meanwhile, the bears are likely to strive to drive the price below the $111,300 support level to sustain a bearish outlook. As we analyze the upcoming bitcoin price action over the next few weeks, our focus will be on establishing a higher low on the weekly chart. If a reversal occurs before the price dips to the $107,000 low, the bulls will establish a higher low and aim to regain control from the bears once more.
The MACD oscillator remains in a somewhat bearish stance following its bearish crossover at the end of August. This should help the bears maintain a lid on the price while it remains in effect. Bulls are eyeing a bullish MACD crossover in the upcoming weeks, which could provide them with the necessary momentum to break through the $118,000 resistance level.