Bitcoin (BTC) Price Prediction – September 8, 2020
Today is the fourth time; sellers will be attempting to break below the psychological support. Bitcoin bulls buy the dips, each time price breaks below the $10,000 support. The support is holding because many investors are prepared to buy BTC at this level.
Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000
For almost a week, BTC/USD price has been consolidating above the $10,000 support. The bears have not broken the support level convincingly. Buyers have also failed to push the coin above the $10,500 high. This is an indication that BTC lacks buyers at higher price levels. However, if more buyers come above the psychological price level, there is a tendency for BTC to rebound above the current support. Bitcoin will resume an upward move if there is a strong bounce above the current support.
The momentum will break the $10,500 resistance and a rally above $11,000. If buyers are successful above $11,000, the uptrend will resume in earnest. On the other hand, if the bullish scenario fails to hold, the bears may attempt to break below the current support. The king coin will decline to $9,800 or $9,000. Meanwhile, BTC is at level 35 of the Relative Strength Period 14. It indicates that BTC is in the downtrend zone and below the centerline 50.
Politics and U.S Dollar Currency Index May Affect Bitcoin This Week
In the meantime, Bitcoin has continued to tests the $10,000 support after the recent drop. Before Bitcoin drops to $10,000 support, the king coin has traded to $12,050 high. Later, it dropped to $9,900, and the price was corrected above $10,000.There are fresh fears among Bitcoin investors concerning the strength of the U.S dollar currency index and the monetary policy in Europe. According to Max Keiser, the U.S dollar currency Index should drop below 80 so that BTC and Gold will begin upside momentum. The U.S dollar currency index (DXY) measures USD against a basket of U. S trading partner currencies.
In the previous week, an inflationary announcement from the Federal Reserve had a bearish impact on the index. However, the reverse was the case last week as this affected the safe havens. According to reports on Sep. 7, DXY was at 92.95, and it rose to 93.25 during the weekend. Max Keiser said: “We need the DXY to drop through 80 to get the real fireworks going in #Bitcoin and Gold,” he tweeted. Keiser also indicated that the happenings in the ongoing Brexit saga may have a positive influence on BTC next month. He indicated that if the European Union assume a hard-line stance with the United Kingdom, the euro could benefit while the pressure will be on DXY. He said: “Hopefully the EU cuts (the U.K.) off in October, freeing the Euro to trade higher. This will help Bitcoin a lot,” he wrote.
In the meantime, sellers have pushed BTC below the $10, 000 support. The king coin has fallen to $9,980 at the time of writing. On September 3 downtrend, the retraced candle body tested the 78.6% Fibonacci retracement level. This implies that Bitcoin will fall to 1.272 Fibonacci level or $9,300 low. Later, BTC will reverse and return to 78.6% extension level where it originated.