What's Good Bitcoin? Analysis, 5th September

5 Sep

Bitcoin — Short-Term Analysis
Once again, I have to start the short-term analysis with "unfortunately."

Unfortunately, Bitcoin did not show enough strength yesterday to create a higher high and break out of its descending channel. Descending channels typically suggest a continuation of the downward trend. In fact, it didn't even reach the upper resistance. Currently, Bitcoin trades slightly above 57k.

As a result, the short-term outlook is slowly turning bearish, especially since Bitcoin is struggling to hold the 57.5k level.

More than ever, Bitcoin must follow through on yesterday's bullish momentum, leave the downtrend channel, and make a higher high (>59.5k). Otherwise, a drop to a lower level (53k) becomes increasingly likely.

Bitcoin — 1D Analysis
The daily chart looks slightly better than the short-term outlook. Bitcoin printed a strong candle yesterday, driven by increased volume. Even more crucial, Bitcoin closed above the essential 57.5k level. However, as the chart shows, Bitcoin has struggled with this level for several days.

From a broader view, nothing has changed and the long-term bull flag is still valid.