Market volume for bitcoin is rising almost ten days in to September as traders return from summer vacation. Volume returns and so does volatility. This week saw both bearish and bullish sentiments in bitcoin. The main question for the rest of the month is whether one of these will prevail or if price consolidation continues.
Actual Market Situation
Last Friday saw the release of August’s non-farm payrolls (NFP). The data showed that 31,000 jobs had been added to the U.S. Economy.
The United States’ labor market remains the foundation of optimism, but it is not enough to avoid the attention from the rising inflationary crisis.
The NFP data came out better than expected, but bitcoin dropped to a two-month low on the same day, falling below $18,600.
BTC has traded between an initial price of $19 500 and resistance at $20,000.
However, as of writing this, the token has surged in today’s session, with prices once again moving above $21,000.
Some attribute this rally to comments from Fed Chair Jerome Powell, who all but confirmed that rate hikes will continue, until “the job is done”.
September Outlook
The BTC/USD exchange rate is at $21,224.86 as of this writing, its highest level since August 26.
Price action seems to be trending towards the $21,650 resistance level, which, if broken could allow bulls to take bitcoin up to $22,000
If this happens, relative strength index (RSI) will be close to a collision with a ceiling at 61.50.
In the short-term, bullish sentiment appears to have risen. However, as the sentiment increases, questions will arise about how much this could last.
Based on this, some may expect further consolidation during September, however, it could take place at a higher range, than August’s support and resistance levels.
The RSI and its possibility of breaking away from 61.50 will be a major indicator for September. BTC could rise to $23,000 if this happens.
What price do you expect bitcoin to be trading at in one month’s time? Please share your views with us in the comments.
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