According to a daily chart, Bitcoin BTC / USD is trading right at the level of the SMA of 21. We can see that it has broken the technical pattern of symmetrical triangles. Now it is located below this technical figure. The outlook may be bearish if it trades below 48,203.
However, the main cryptocurrency is under strong buying pressure at near the 46,000 level. Since August 18, the price of Bitcoin has been consolidating below the psychological level of 50,000 and bouncing above 46,250, as buyers pause before resuming the next rally.
Despite the overall optimistic outlook, investors remain cautious as this consolidation may also be a negative sign for BTC. If it remains below the 21 SMA, it could fall to the level of 43,750 where the 6/8 of murray is located.
BTC bulls remain hopeful as long as the key support of the 200 EMA located at 40,620 is defended. There is an opportunity for BTC to continue its bullish rally, so in the medium term it could reach the 56,250 level +2/8 of murray.
The downside pressure will intensify following a sustained break below the 200 EMA. This move will open the doors for a sell-off towards the 2/8 murray support located at 31,250.
The eagle indicator that measures the strength and volume of the market in daily charts has reached the level of 95, which could be a sign that in the short term there could be a bearish movement of BTC. The bulls can see this retracement as a good chance to buy around the 40,000 psychological level.
Support and Resistance Levels for September 01 - 02, 2021
Resistance (3) 49,218
Resistance (2) 48,046
Resistance (1) 47,656
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Support (1) 46,875
Support (2) 46,484
Support (3) 43,750
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Trading tip for BTC for September 01- 02, 2021
Sell below 48,203 SMA 21 with take profit at 43,750 and 40,625 (EMA 200), stop loss above 49,000.
The material has been provided by InstaForex Company - www.instaforex.com