Traders say Bitcoin's weekly closing above a crucial support level is “good news,” and the day's climb to $57,500 may indicate a bottom.
Bitcoin's recent decline worsened on Sept. 5 after the August US payrolls data was less than predicted. After a severe decline, Bitcoin fell below $55,000 for the first time since Aug. 5's "Black Monday."
Bitcoin price recovered some lost ground and is currently in its third straight positive session on the daily timeframe despite the weak weekend activity.
In one of his newest X analysis postings, prominent trader and analyst Rekt Capital called Bitcoin's weekly closing above $53,250 “good news,” as it has “protected the very bottom of the bargain-buying area (orange).”
To capitalize on this momentum, Bitcoin must retake $55,881 (blue) as support to recapture the black channel bottom.
“Rektember” has been bad for risk assets like Bitcoin. The trader expects Bitcoin prices to soar in the fourth quarter of 2024.
“You just need to survive September,” Rekt Capital captioned a CoinGlass graphic of Bitcoin's monthly performance.
Bitcoin may have three consecutive months of positive monthly returns if history repeats.”BTC monthly returns. Source: CoinGlass
September traditionally contracts because “it is a time when summer gains are taken, and many companies set new objectives for the year’s final quarter,” according to Swissblock Insights.
The researchers claimed Bitcoin's risk index is 99.62, “levels similar to those seen in mid-August,” when Bitcoin fell below $50,000.
Swissblock Insights experts said the danger signal showed that a bottom is not well defined, suggesting a drop to lower levels.
However, when the Bitcoin Risk Index falls, it may be a decent entry time, even if we are not back in the low-risk zone: The next surge up will likely be aggressive.”
Bitcoin bulls decreased ask orders between $55,000 and $56,700, according to CoinGlass's latest statistics. At publishing, $57,000 had the maximum upside liquidity, $38.85 million.
The BTC/USD four-hour chart reveals a bullish RSI divergence before the three-day price rebound. RSI is a trend-following oscillating momentum indicator that determines market overbought, oversold, or accumulating.
When momentum increases and price decreases, the RSI diverges bullishly, causing upward moves.
Bullish divergence may indicate that bulls are taking control of the market and want to drive the price toward the 200-day exponential moving average around $59,000.
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