Daily Market Recap – BTCUSD Volume is still far too low in the rebound

The bitcoin price has bounced off support at $44,000 this week, in what was a very low trading volume. The market is now facing resistance at $48,000, and a daily technical breakout is needed to consider going higher.

Many were surprised by the heavy liquidation session on Tuesday, September 7 on the price of bitcoin, causing the price to fall by more than 10%. But before making too hasty a judgment, we must look at the immediate context, namely a more than 100% increase for the total market capitalization of cryptos between July 20 and the beginning of September.

Admittedly, a -10% session is not insignificant, but it's not surprising given bitcoin's 12-year volatility statistics. It was a double phenomenon that occurred on Tuesday, September 7, profit-taking after reaching the major technical resistance at $53,000 and the activation of many protective stops by individual traders in the wake.

A “hunt” for liquidity that did not give the starting point for a fall like last spring, the market stabilized on the support at $44,000, the upper part of a support interval for long positions between $40K and $44K.

The technical debate raging on bitcoin is whether this is the starting point for a fall towards $30,000 or an isolated shock that will allow the summer uptrend to resume. Traders should pay attention to the price action in the run of the 0.5 Fibonacci retracement level around $46841 which should indicate whether a larger correction will occur in the short term.

Meanwhile, the Ether token also erased some of the fall from the Tuesday, September 7 session, preserving support at $3000, the technical guarantor of the summer uptrend. The market is now meeting resistance at $3,700.

 (Chart Source: Tradingview 20.09.2021)

 (Chart Source: Tradingview 20.09.2021)

As for bitcoin, more volume and bullish commitment in terms of capital are needed to get back to the summer high. The market will make its technical choice on Ethereum before the major expiration session on Friday, September 24 in the BTC and ETH options market.

Support & Resistance Levels:

R3       59,603

R2       57,173

R1       52,956

S1        46,841

S2        42,578

S3        37,303

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.