Bitcoin needs to close above these two key levels for historic September
September is only a few days away, and so there are only a few days left for Bitcoin to have a month to go. To make history, King Coin must hold above two key levels, both of which converge on this crucial monthly close.
The way the candle closes in September could set the stage for not only the rest of 2020 but also into 2021 and beyond.
Why Bitcoin’s September monthly candle close is important?
Bitcoin’s price is always at the critical juncture or point of intersection, as is often pointed out by crypto analysts and the media. And while most of the times are really important, few are as important as this monthly close of the candle, which takes place on September 30.
While that day isn’t typically an important one, it is the monthly candle close in Bitcoin and other cryptocurrencies that makes it especially notable.
The reason behind significant importance is related to the price action that takes place within that particular time frame.
In technical analysis, maximum weight is given for the highest timeframes when it comes to overall trend changes. For example, daily growth is great and all to bulls, but when the big green candles start to appear on the weekly and monthly timeframes, you know it’s moving to a bull market.
Bitcoin’s September monthly shutdown has a lot to offer, both figuratively and literally. And it is actually the two lines converging at the same time, coinciding with the most important monthly close that could happen in crypto.
In the chart above, the Bitcoin price is rechecking the downtrend of the “meme” resistance line turned support. A close above this level, followed by a reversal with volume, will confirm a breakout according to pure technical analysis rules.
In addition to downward resistance lines or upward support lines, support and resistance also exist horizontally. It also tends to exist in rounded numbers, such as $ 10,000 or repeating characters like $ 6666.
Just as important as a retest of the downtrend line, a retest of the horizontal resistance turned support is also in progress. In the chart below, Bitcoin is also holding another line that has been more tested than the downtrend line.
Both trendlines are being retested as support says something special will happen in September 2020, and the results can set the stage for the rest of the year and beyond.
If Bitcoin is indeed breaking out into a bull market, then this monthly close could confirm that. After that, it is never possible to look back at any price below either of those trend lines.
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