Bitcoin in daily charts is trading around 61.8% Fibonacci, a key level that could mean the beginning of a reversal and change in trend in the medium term. For this, the price should consolidate below this level.
BTC has reached around 52,000 after having found strong support around the 200 EMA located at 45,900. It has twice tested this support and finally made a good technical bounce that brought it to these current trading levels.
Bitcoin price started its uptrend after falling below the $ 30,000 barrier on July 20. Since then, BTC has risen approximately 78%. Now it is above the psychological level of $50,000. If it continues with the uptrend, it could reach the +2/8 level of murray located at 56,250 in the next few days.
While the general trend remains bullish and unchanged, investors should take into account that BTC is entering an overbought level, as the murray indicator has indicated 53,125 and 56,250 as extreme overbought levels with an imminent technical correction.
Because BTC is at the 61.8% Fibonacci level and above this level there is strong resistance, we believe we have a good selling opportunity below this level with targets at 47,150 (50.0%) and 43,500 (38.2%).
Our outlook will be bearish as long as BTC trades below 52,000, all the way to the 6/8 murray level located at 43,750, as the current price could be a bubble and a sharp drop could occur, just like what happened on May 19 So, we must be very careful. The eagle indicator on daily charts is about to reach the overbought zone.
Support and Resistance Levels for September 06 - 07, 2021
Resistance (3) 54,591
Resistance (2) 53,335
Resistance (1) 52,346
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Support (1) 49,878
Support (2) 48,621
Support (3) 47,856
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Trading tip for BTC for September 06 - 07, 2021
Sell below 51,800 (61.8%), with take profit at 47,830 and 43,750 (6/8), stop loss above 53,000
The material has been provided by InstaForex Company - www.instaforex.com