Bitcoin traders pinpoint support levels as BTC price taps $26.2K

Bitcoin (BTC) recovered its play adjacent losses connected Aug. 28 arsenic hazard assets roseate connected China taxation cuts.

BTC/USD 1-hour chart. Source: TradingView

BTC terms 200-week EMA stands retired arsenic support

Data from Cointelegraph Markets Pro and TradingView followed a BTC terms uptick into the day’s Wall Street open.

BTC/USD managed $26,226, marking its highest levels since Aug. 25 and afloat compensating for weakness seen overnight.

News that China had chopped taxation connected banal trading by 50% appeared to buoy U.S. futures into the open. The S&P 500 and Nasdaq Composite Index subsequently opened up 0.6% and 0.7%, respectively.

— HORSE (@TheFlowHorse) August 28, 2023

Eyeing the trading scenery for the coming week, Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, flagged the 200-week exponential moving mean (EMA) astatine astir $25,700 arsenic a cardinal enactment portion to protect.

“First of all, the 200-Week EMA lies beneath us. It's astatine $25,650 (Bitstamp) oregon $24,750 (Binance). The decision is, you don't privation to driblet beneath that level and you'd preferably privation to mimic 2015-2016 sideways period,” helium wrote successful portion of an X post.

“If the 200-Week EMA sustains, conclusions are that we're bottoming retired present and we are perchance getting a monolithic introduction point. If it's lost, I'd beryllium looking astatine a lawsuit of $19,500-21,500 arsenic the adjacent large introduction constituent and last capitulation. On the little timeframes and implicit the week, it's inactive imaginable to expanse beneath the 200-Week EMA. As agelong arsenic we don't suffer the level.”

BTC/USD annotated chart. Source: Michaël van de Poppe/X

Van de Poppe continued that bid publication liquidity “most likely” resided beneath the 200 EMA.

“In that regard, a expanse of that country is the astir apt outcome,” helium wrote.

“Two strategies tin beryllium deployed: 1 - Sweep astatine $25,750 for an assertive agelong introduction towards the different broadside of the scope (entry tin lone beryllium taken aft the expanse and erstwhile $25,750 is reclaimed). 2 - Sweep of $25,200 towards $24,700-25,000 (the 200-Week EMA connected Binance) and bullish divergences connected higher timeframes. That's the aureate commercialized and could beryllium the commencement of a reversal. However, $25,750 should beryllium reclaimed successful the bounce, different this commercialized could beryllium invalid/stopped out.”

BTC/USD annotated chart. Source: Michaël van de Poppe/X

Popular trader Titan of Crypto meantime highlighted $25,900 arsenic a salient portion of interest.

“$25,900 is the level to watch,” helium summarized successful portion of X analysis.

— Titan of Crypto (@Washigorira) August 28, 2023

Bitcoin RSI stays "very low" for 2nd week

Elsewhere, chap trader Pheonix referenced persisting debased levels connected Bitcoin's comparative spot scale (RSI) connected little timeframes.

Related: September ‘crash’ to $22K? — 5 things to cognize successful Bitcoin this week

As Cointelegraph reported, depending connected the timeframe successful question, these reached levels not seen successful 5 years aft the 10% BTC terms dip 10 days ago.

"RSI inactive precise low, for 1.5 weeks already now," portion of X commentary connected the time read.

"7/8 times it went beneath 25 the past years, corresponded to the (local) bottommost & a 30% minimum emergence followed."

Further investigation showed the 1 objection to the regularisation coming successful September 2019.

— Phoenix (@Phoenix_Ash3s) August 28, 2023

RSI attempts to measurement erstwhile an plus is overbought oregon oversold astatine a fixed terms point.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.