Bitcoin Daily Price Forecast (9/2/20) - The Battle for $12,000 Surges On

By Crypto Daily FX | Crypto Daily FX | 1 Sep 2020

Bitcoin rallied again on Tuesday, marking the third consecutive green day in a row, closing above the $12,000 level. This area has caused a lot of choppy behavior as Bitcoin range between $11,000 and $12,000 for a couple months following the big ascent from $9,000. This is now a bullish pattern in  the short-term as well as longer term charts.

(September 1, 2020 8:00 PM EST)


Bitcoin buyers stepped back in and BTC climbed back up to the $12,000 level again, where it has found resistance in the past. This is a bullish development and pattern, and every indication is this was a consolidation after a big move up, and Bitcoin had to settle down and claim new support before moving higher. This appears to be the case and Bitcoin seems to be responding favorably to higher highs and, more importantly, higher lows. If BTC can break above $12,000 and hold it, this should set up Bitcoin for a run up to $14,000, and then $20,000 and beyond. There are a lot of bullish things going on in the crypto and DLT spheres, with the Winklevoss twins recently declaring Bitcoin as the only long-term mode of protecting wealth against inflation, layer 2 solutions nearing initial phase launches, and Federal Reserve liquidity injections continuing at unprecedented levels. Interestingly, gold had a bearish day today and as of late, showing marked weakness coupled with equities compared to gold's newer, technologically superior stepbrother Bitcoin. The two assets have become increasingly correlated since the March-April market crash, but there are times like this when Bitcoin and the majority of the crypto market show they are relatively uncorrelated to traditional markets and march to the beat of their own drum much of the time.

Look for support around the $11,000 level, which is now where the 50 Day EMA is rapidly approaching ($10,825), ironclad support around $10,000, and the 200 Day EMA around $9,316. I don't see much selling pressure going forward, but even so, I think Bitcoin's downside is limited and should be treated as a BTFD scenario until the trend changes. Quantitative Easing and infinitely inflating the fiat market with more paper money does not have an instantaneous effect; although, it has not taken long to start to have an impact on Bitcoin. One thing is for certain: 2020 is the ideal macro economic environment for Bitcoin and Crypto as a whole to mature and showcase its value in a fundamentally flawed fiat-based financial system. In fact, it is precisely economic crises such as this one we all live through every day that pseudonymous Bitcoin founder Satoshi Nakamoto conceived the philosophy of a decentralized, immutable, fungible, fixed-supply asset like Bitcoin. Staying on the sideline just isn't possible anymore; there will only be winners and losers, and winners will be made (or enriched) by owning hard assets, such as real estate, commodities, precious metals, stocks, Bitcoin, and Ethereum

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