Time to unblock? Bitcoin price pushes to key resistance near $23,000

On September 12, Bitcoin is doing Bitcoin things as usual. Since September 9, the price has broken out nicely, closing a gain of nearly 16% and rallying to the long-term descending trend line that appears to have resistance at $23,000.

BTC/USDT 1 Day Chart. Source: TradingView

Perhaps BTC and the broader market are turning higher ahead of the Ethereum merger scheduled for September 14, or perhaps the elusive bottom is finally in. Weekly charts from TradingView show that on June 27 and August 15, the Bitcoin Relative Strength Index had fallen to lows not seen since 2019.

BTC/USDT 1 Day Chart. Source: TradingView

Currently, the gauge has recovered from a near oversold 31 to a current reading of 38.5. Some traders may also note a bullish divergence in the metric, where the RSI is following an uptrend line while Bitcoin’s weekly candlesticks are trending down. Bitcoin’s Moving Average Convergence Divergence (MACD) has also crossed over as buying volume has increased and BTC price is trying to break out of the current 90-day range.

As noted in a previous analysis, since January 21st, Bitcoin price has been just trading in a trading range in what turned out to be consecutive bearish flags that see a continuation to new yearly lows. The price has consistently met resistance in the general downtrend line and the price action seen today and over the past 90 days is not a deviation from the trend.

Traders should watch the price of BTC to secure some daily closes above the trendline resistance and setting a daily high above $25,400 or even a rise to the 200-MA at $30,000 would be a great picture either of a trend change or at least one leg up to a new consolidation range. Until that happens, the standard practice among traders is to not trail long-term resistance and wait to see if the bullish momentum holds or the prevailing trend remains intact.

Related: The Fed, Merge and BTC $22,000 — 5 Things to Know in Bitcoin This Week

Of course, there are a handful of other on-chain and derivative metrics that could add valuable context to Bitcoin’s current price action, but the purpose of this brief analysis is simply to provide a quick, instantaneous interpretation of BTC’s current market action and to examine what traders may be thinking in the short term.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.