#Bitcoin (BTC) price is leading the rest of the market, including Ethereum (ETH) and #Ripple (XRP) prices, north, with momentum indicators painting a bullish picture. However, investors must exercise caution from here on out, with a lot still to be determined.
US CPI annual inflation comes in above expectations at 3.7%, Bitcoin price rests above $26,000
Bitcoin price forging an uptrend
Bitcoin (BTC) price is forging an uptrend after two successive green candlesticks. While the outlook appears promising, investors should exercise caution lest the recovery prove fake.
For the bullish perspective, the Relative Strength Index (RSI) moving north points to rising momentum, which is corroborated by the green candlesticks of the Awesome Oscillator (AO). Furthermore, RSI is converging bullishly with Bitcoin price adding weight to prospects of an uptrend. This is indicated by BTC priceâs recent streak of lower lows, which were not mirrored by the RSI.
Furthermore, #BTC has retained above the last higher low of the previous uptrend â the June lows at $24,800. Given this key level has held, the market structure remains long-term positive, making a recovery a real possibility.
In an uptrend scenario, Bitcoin price could break past the resistance confluence between the 50- and 200-day Simple Moving Averages (SMA) before confronting the 100-day SMA, with the three moving averages converging around the psychological $28,000. This makes this obstacle a formidable one. A confirmed breach above the $28,838 resistance level would increase the odds for a continuation north.BTCUSDT_2023-09-13_19-34-13-638302374340419481.png
BTC/USDT 1-day chart
On the flipside, a strong resistance barricade hovers above Bitcoin price, indicated by the 50-day SMA (short-term moving average) crossing below the 200-day SMA (longer-term moving average). Any move up to this cluster of MAs will likely be met with technical selling pressure.
This technical formation is also what is known as a âdeath crossâ which is when the 50-day SMA crosses below the 200-day SMA, and signals oncoming bearishness in the market. However, it is not a textbook version of the pattern as the 200-day SMA is rising as the 50 crosses below it. Ideally, for a five-star set-up, both MAs should be falling.
A bearish reversal could, nevertheless, send Bitcoin price back below $25,586, or in a dire case, to test the $24,000 psychological range. The June lows at $24,800 are a key make-or-break level, and if breached could flip the script for the lead #crypto .
Also Read: Bitcoin price rise pulls crypto market cap above $1 trillion; US headline CPI forecast to rise; core to fall
