The price of Bitcoin (BTC) is slightly stable at around US$26,300, according to data from CoinGecko. However, the largest cryptocurrency on the market could still suffer a price correction this September.
This is what analyst Akash Girimath pointed out. According to him, Bitcoin price remained unperturbed by the US CPI announcement on September 13 and continues to move within a range. However, the weekly chart shows a potential near-term recovery that could set the stage for a sharp correction.
The analyst pointed out that on the daily chart, BTC currently costs US$26,257. Furthermore, it is supported by the Momentum Reversal Indicator (MRI) support level represented in green dots at $25,188.
Bitcoin Price Analysis
Girimath also highlighted the bearish crossover between the 200-day simple moving average (SMA) and the 20-week exponential moving average (EMA):
“The last time a similar crossover occurred was on January 23, 2022, after which Bitcoin price triggered a pullback that retested the 200-day SMA. Rejection at this level was followed by a continuation of the downtrend, in which Bitcoin fell 70% and formed a cycle bottom.”
Therefore, if these patterns repeat, a pullback could take the Bitcoin price towards the two main support levels: US$25,186 and US$20,431.
Also according to the analyst, the Relative Strength Index (RSI) in the weekly period also fell below the average level of 50. Therefore, until the price of Bitcoin rises enough for the RSI to recover, the weekly deadline for BTC remains bass player.
On the other hand, invalidation of the bearish outlook will occur if Bitcoin price turns the 200-day SMA at $27,670 on the weekly time frame into a support floor. If BTC bulls manage to remain above the newly formed support, it is likely to attract sidelined buyers.
According to the analyst, such a development could propel Bitcoin towards key resistance levels of $30,000 and $36,000.
“Another scenario in which Bitcoin price could overcome these hurdles would be if a spot Bitcoin exchange-traded fund (ETF) were approved,” he concluded.