Bitcoin (BTC) price rose slightly above $57,500 on September 9 as markets recovered from the “hyperbolic” reaction to the August payrolls report.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin price action shows an increase of about 8.3% from its weekly low of $52,546.
BTC/USD daily chart. Source: TradingView
With the Bitcoin price reversing today, many traders are wondering if BTC has hit bottom.
Bitcoin Weekly Closing Price Delivers ‘Good News’
Bitcoin’s recent decline accelerated on September 5 after the U.S. payrolls report for August came in slightly weaker than expected. This was followed by a steep correction, with the Bitcoin price falling below $55,000 for the first time since “Black Monday” on August 5.
However, despite the slow weekend trading, Bitcoin prices have recovered some of the lost levels and are now trading bullish for the third consecutive trading day in daily trading hours.
Bitcoin’s weekly close above $53,250 is “good news,” as popular trader and analyst Rekt Capital explained in one of their recent analysis posts on X, “because it served to protect the bottom of the buy zone (orange).”
“To build this momentum, Bitcoin will next need to recover $55,881 (blue) to regain the black channel bottom as support.”
BTC/USD Weekly Chart. Source: Rekt Capital
Historically, “Rektember” has not been a friendly month for risking assets, including Bitcoin. However, this trader believes that Bitcoin prices are likely to rise further in Q4 2024.
“We just need to survive September,” Rekt Capital said in a caption accompanying a CoinGlass chart showing Bitcoin’s monthly performance.
“If history repeats itself, Bitcoin could have three consecutive months of positive gains. Monthly returns.” Bitcoin monthly returns. Source: CoinGlass
According to Swissblock Insights, September has historically shown contraction, mainly because it is “a time to reap the gains made over the summer and when many companies set new targets for the year-end quarter.”
The analysts said the Bitcoin Risk Index was at 99.62, “similar to mid-August levels,” after Bitcoin fell below $50,000.
“The danger signal shows that the bottom is not clearly defined,” analysts at Swissblock Insights explained, adding that this suggests a potential downside downtrend.
“Nevertheless, if we see the Bitcoin risk index pullback, even if we don’t get back into the low-risk zone, that could be a good entry point. The next surge will probably be aggressive.”
Bitcoin Risk Index time series from the beginning of the year to present. Source: Swissblock Insights
According to the latest real-time data from monitoring resource CoinGlass, Bitcoin bulls were slashing sell orders between $55,000 and $56,700. At the time of publication, the $57,000 level attracted the most liquidity, totaling $38.85 million.
Bitcoin Liquidation. Source: Coinglass
From September 8 to 9, the Bitcoin short-term liquidation volume exceeded $54.2 million, and the total volume of all cryptocurrencies reached $135.86 million.
Bitcoin Liquidation. Source: Coinglass
Bitcoin RSI fuels bullishness
The BTC/USD 4-hour chart shows a bullish divergence on the 4-hour RSI ahead of the price recovery over the past 3 days. The RSI is a trend-following oscillatory momentum indicator used to assess whether the market is overbought, oversold, or accumulating.
When a bullish divergence occurs in the RSI, it is when momentum increases along with price declines, indicating an uptrend.
BTC/USD 4-hour chart. Source: TradingView
This bullish divergence could be a sign that bulls are taking control of the market and looking to push prices towards the 200-day exponential moving average at $59,000 in the short term.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.