Higher timeframe view to set context: 2 months after the Pi Cycle Bottom indicator flashed the buy signal, we're seeing a “gravestone doji” candle forming this month.
What is interesting is that it seems that we are getting a horizontal support on last cycle's all-time high of 19.6k for 4 months running. This month's candle looks to be a potential reversal on the higher timeframe.
Next we'll look at the weekly chart to gauge what could possibly be the next move for BTC. Based on the VMC indicator, a buy signal has flashed due to a price increase before the CPI results release on 13 September. Market bottom indicator also denotes an ease in selling pressure. Using the Logarithmic MACD oscillator, it does seem like a crossover is about to happen which could lead to positive prices.
End note: DXY could've topped out with a sell signal on VMC but current week's candle has cancelled out last week's bearish hammer top. All the indicators are pointing towards a reversal but market isn't buoyant yet as news of inflation & a recession has caused the market to remain very cautious. For now, it tends to remain flat/sideways till FOMC meets on 22 September 12mn SGT. If interest rates hike turns out at 75bps as expected, then we could see BTC price action to be neutral/slightly bullish with no expected sell-off.
Current supports: 19.5k, 18.5k, 17.6k. If it breaks the 17.6k support line, a downward spiral to 13.4k is likely.
Current resistances: 20.7k, 22.5k, 24.5k.
We've flipped 19.5k zone many times, suggesting this could be a strong support if price maintains above, or a strong resistance if price goes below