Bitcoin Daily Price Forecast (9/9/20) - Bitcoin Army HODLs $10,000?

By Crypto Daily FX | Crypto Daily FX | 9 Sep 2020

Bitcoin sold off again on Tuesday, initially bouncing off the $10,000 level before the sellers returned to retest the $10,000 level. All markets have been red the past 3 trading days, so this is no surprise, but the question is will $10,000 hold as support or will BTC break down further, as has the NASDAQ, S&P, Gold; hell, everything.

(September 8, 2020 9:00 PM EST)


Support: The immediate support level is $10,000, which is a huge psychological level. The buyers have held thus far but I wouldn't be surprised to see an impulsive bearish candle pierce down into the $9,000s tomorrow on continued equities markets bleeding. Next would be the 200 Day EMA around $9,364, which is roughly the 38.2% retracement level of the larger macro move Bitcoin made over the past few months. That is where I would stake another tranche 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 Elliotticians 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. 

Based on Federal Reserve and US Treasury liquidity flows, tomorrow may be a trough in the markets with a lower low but a significant bounce off support. If this is the case, look for Bitcoin to follow suit. If aggressive selling continues in all other asset classes, it's precisely during this time where Bitcoin has any sort of correlation with other asset classes. Once the liquidity event slow down, that is when BTC will de-correlate and begin to move independently, just as it did a few weeks after the March COVID crash.

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