Even though volume over the last five trading sessions was relatively low the significance of its speedy return to a bullish market impressed me especially when you look at how shallow the correction was. Yesterday’s small gain was enough to take prices back above the 23% Fibonacci retracement level ($10,697) of the nearly $8,000 climb since March.

Bitcoin futures are trading up 3.7% ($380) on the day and as of 4 PM, EDT is trading at $10,720 basis the most active futures contract on the CME. It seems as though Bitcoin futures found support at the 100-day moving average which happens to be right around $10,000. This support level is a relatively new occurrence in BTC and a very bullish one at that.

Ever since BTC futures hit a high of $12,635 on August 17^th the digital asset has been in a corrective phase, bringing down prices to just under $10,000.  However, yesterday marked the third day in which pricing found support at the 100-day moving average.

Since September 2^nd BTC most active futures contract has lost approximately $2,000 in value. What is worse is the last three trading days have had extended lows along with a massive spike in (double the daily average in August) daily volume. Also, the RSI has plummeted 20 points, and the bulls have given up three major support levels in these last four brutal trading sessions.

Bitcoin took a beating today currently futures on the CME are pegged at $10,750 down 6.2% or $710 on the day. The trend of BTC leading gold and silver while moving in the same direction continued, so am I convinced a correction has started or that we have major chart damage?

BTC futures closed out last month with a small increase for the month. That was enough of a gain that the close for August was second only to June 2019. A more bullish picture is almost finished being drawn out as well on a monthly candlestick chart due to prices above the Ichimoku cloud which has indicated massive rallies in Bitcoin before.

Bitcoin seems posed to hover around $11,500 until a major breakout occurs. Just as BTC has done three times since March I expect a move of $1,000 or more to be the most likely way for BTC to exit the sideways trading it is currently in.

Bitcoin futures just like gold were expected to pop higher after yesterday’s ‘non-event’ speech by Chairman Powell. Both assets however dropped sharply yesterday to the surprise of many traders.

As Cointelegraph reported ~

“It could have been the confluence of the market pricing in the Jackson Hole symposium and the lower-than-expected inflation rate.

Today Bitcoin futures once again found resistance at the level it had broken above on Monday of last week. This level is the 23% retracement from 2019’s highs and comes in at $11,900. Currently BTC futures are up fractionally on the day and pegged at $11,760.