- Bitcoin and Ethereum have a strong positive correlation. The two coins share the same directional bias even from an intraday perspective.
- Since the plunge that happened on the day El Salvador declared BTC as a legal tender, the price of both pairs has been on a sideward/ranging movement.
- There are certain technical analysis levels that every swing and day trader needs to be aware of as the week starts.
Bitcoin’s Weekly Analysis.
A day before El Salvador officially declared BTC as a legal tender, price had hit a 3-month high of $52,894. Many anticipated a continuation of the bullish momentum the next day due to the implementation of El Salvador’s Bitcoin law. However, the implementation was accompanied by some challenges. The government was offering every El Salvador citizen a BTC package worth $30. This was intended to initiate BTC circulation in the economy. However, most of the citizens tried to convert the BTC back to USDs. This, among other factors, reduced BTC’s price value by roughly 8.5%.
After this plunge, price has been moving within a range between the $43,300 low and the $47,256 high. A break above this range on 15th September was followed by a strong downward momentum that has led price back to this week-old range as shown on the diagram below. At the time of this writing, Bitcoin’s price was $45,503.
Therefore, the High ($47,265) and the low ($45,503) of this range represent the immediate levels of importance for intraday traders for this week. However, for positional traders, price is still in a bullish momentum as shown in the chart below;
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