Bitcoin broke down again on Friday, testing the the $10,000 level before finding support and rallying up towards the $10,700 level. Saturday has seen continued selling, with a second consecutive re-test of support at $10,000 and Bitcoin briefly wicking under $9,000 before buyers stepped in to hold the line.

(September 5, 2020 12:00 PM EST)

Support: With the 50 Day EMA having given way, the next immediate support level is $10,000, which is a huge psychological level. Next would be the 200 Day EMA around $9,350, which is roughly the 38.2% retracement level of this larger macro move Bitcoin made over the past few months. That is where I would stake another trance of buying, and look for other technical buyers to step in as well. However, crypto is volatile and it is very possible that Bitcoin makes a deeper retracement to the 50% fib level around $8,201.07. This would make a lot of sense as $8,000 was previous resistance that was broken leading up to the recent run from $4,000 to $12,000. A 50% retracement to ~$8,000 would also satisfy a lot of Ellioticians as a defining Wave 2 correction. If this is true, this would be an excellent buying opportunity for the golden Wave 3, which would Bitcoin well above the $12,000 level where BTC has found recent resistance and up closer to the all-time highs. 

Weekends are typically lower volume so the selling may continue, though that's not to say it's particularly meaningful; we shall see come Monday/Tuesday (Monday is a federal holiday in the US). All eyes are now on what happens in the markets Tuesday, as US traders return to work and margin calls from Thursday's equities market drops would trigger additional selling. If this is the case and more than anticipated investors are over-leveraged, the bloodletting may continue well into the middle of September.

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