Bitcoin lines up RSI showdown as BTC price slips toward new 2-week low

Bitcoin (BTC) fell further after the Sept. 1 Wall Street open as monthly close losses continued to play out.BTC/ USD 1-day chart. Source: TradingViewBTC price “Grayscale hype” disappearsData from Cointelegraph Markets Pro and TradingView followed deteriorating BTC cost efficiency, which hit its least expensive since Aug. 22. Bitcoin bears took full advantage of the August monthly close, with disadvantage volatility characterizing Bitcoin and crypto markets overnight.Overall, BTC/USD lost 11.2% in August, and looking ahead into September, there was little optimism relating to a rebound among market observers.In his latest YouTube upgrade, popular trader and expert Rekt Capital delineated Bitcoins possible next steps.BTC cost had actually stopped working to hang on to gains coming thanks to “Grayscale buzz,” he said, with selling pressure weekly and strong relative strength index (RSI) values dropping towards a key rising trendline.A cluster of rapid moving averages (EMAs), previously serving as support, were likewise now turning to resistance.”Weve seen for a really long time, several months– over a year now, really– that this trendline is holding, and if we lose this RSI trendline, well probably see further drawback,” Rekt Capital discussed. BTC/USD annotated chart with RSI information. Source: Rekt Capital/YouTubeTargets for a fresh drop lay at various points on the way to $23,000, now a favorite among traders.”Somewhere between 7% and 13% need to be affordable” for September losses based on historical norms, he included, referencing data from on-chain tracking resource CoinGlass.BTC/ USD regular monthly returns chart (screenshot). Source: CoinGlassShould a relief rally happen, Rekt Capital continued, this could peak at $27,200– a line in the sand that utilized to function as support. U.S. dollar strength retests June highsBitcoins efficiency was not helped by a second day of solid benefit for U.S. dollar strength.Related: Why is the crypto market down today?The U.S. Dollar Index (DXY) was above 104 at the time of composing, having actually made up for recent losses and apt to continue an uptrend that began in mid-July. A previous local high in June served as resistance upon a retest in August, with this now the level of interest.Market participants are divided over the existing function of the DXYs strength in reducing BTC cost, with an inverted correlation between them consistently challenged over the past year.U.S. dollar index (DXY) 1-day chart. Source: TradingViewThis post does not include investment recommendations or recommendations. Every investment and trading relocation involves danger, and readers must conduct their own research study when making a choice.

Other Questions People Ask

What does the RSI showdown indicate for Bitcoin as its price slips toward a new 2-week low?

The RSI showdown for Bitcoin suggests that the cryptocurrency is approaching a critical juncture. As the relative strength index trends downward towards a key rising trendline, it indicates potential further downside if this level is breached. Traders should monitor this trendline closely, as losing it could lead to significant price drops, with targets potentially reaching around $23,000.

How has the recent BTC price decline affected market sentiment regarding Bitcoin's future?

The recent decline in BTC price has led to a pessimistic outlook among market observers. With Bitcoin losing 11.2% in August and showing little signs of recovery in September, traders are cautious. The absence of "Grayscale hype" has further exacerbated selling pressure, leading many to anticipate continued volatility and potential further losses.

What role does the U.S. dollar's strength play in Bitcoin's price movement toward a new low?

The strength of the U.S. dollar has a significant impact on Bitcoin's price movement, especially as it retests June highs. As the U.S. Dollar Index (DXY) rises, it often correlates inversely with Bitcoin's performance, contributing to the recent price decline.

What are the potential targets for Bitcoin if it continues to decline toward a new low?

If Bitcoin continues its downward trajectory, traders are eyeing several key targets. Analysts suggest that a drop could see BTC prices fall to around $23,000, with historical data indicating that losses between 7% and 13% are reasonable for September. Conversely, if a relief rally occurs, resistance is anticipated around $27,200, which previously served as support.

How can traders prepare for potential volatility in Bitcoin as it approaches a new 2-week low?

Traders can prepare for potential volatility in Bitcoin by closely monitoring the RSI trendline and key support levels. Setting stop-loss orders can help mitigate risks associated with further declines. Additionally, staying informed about macroeconomic factors, such as U.S. dollar strength and market sentiment, will be crucial for making timely trading decisions as BTC approaches a new low.