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Bitcoin short-term price analysis: 6 September

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Bitcoin short-term price analysis: September 6
Source: Pixabay

Any bitcoin drops under $10,000 are being bought up quickly leading to long bottom wicks. This shows that there are a lot of bidders under $10,000 waiting eagerly to buy bitcoin.

At press time, however, on a lower time frame, Bitcoin formed a bullish pattern; hence, in the short term, we can expect bitcoin to go higher.

Bitcoin 1-hour chart

The one-hour chart showed formation of a falling wedge, which has a bullish bias as the price breaks out of it. Although the price has broken out of the falling wedge and slid lower, this could be a fakeout. Most patterns, especially, in crypto have a fakeout before proceeding to breakout in the right direction. This hurts the performance of the pattern.

BTCUSD TradingView

The above chart showed two indicators: OBV, which indicates the volume for the asset, and RSI, a momentum indicator. Both are lagging indicators, regardless they provide a good insight when combined with the price and other indicators.

There is a bearish indicator between OBV indicator and the price. Hence, going forward, we can expect the price of bitcoin to pump. Additionally, RSI indicator is now at a 50 level – which is a neutral level.

Although things seem very volatile right now, it is better to have a tight stop-loss to avoid any wicks as seen before.

Entering a long trade at $10,178 with a stop-loss at $10,082 would mean a loss of 0.94%. Considering the target aka take-profit at $10561 or 3.72% surge, this has a good risk-to-reward ratio of 3.95.

An additional reason for this tight stop-loss is because of the recent crash of bitcoin. CME gap ranging from $9,645 to $9,995 will be filled soon and bitcoin might even head lower. Considering this scenario it is better to just short bitcoin on a larger time frame.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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