Highlights:
Bitcoin is contending with three moving averages in close proximity on the daily chart following gains at the start of the week.
The importance of reclaiming these averages is amplified by the monthly and quarterly closing analysis.
A range of factors contributing to BTC price volatility is emerging this week.
Bitcoin (BTC) is facing three critical moving averages simultaneously — with the outcome for the bulls likely hinging on surpassing them.
Recent analysis from Keith Alan, co-founder of trading tool Material Indicators, highlights the necessity of observing upcoming daily closes.
Bitcoin bulls strive for support flips
Despite a strong rebound from about $109,000 to start the week, bulls remain in a precarious position.
According to Alan’s market structure analysis, a group of simple moving averages (SMAs) has converged into a compact area.
The 21-day, 50-day, and 100-day SMAs have aligned, coinciding with the current spot price.
“They’re all tightly clustered right now,” he stated in a video update posted to X.
As of this writing, data from Cointelegraph Markets Pro and TradingView shows BTC/USD trading slightly above the 50SMA but below the other two, having closed above all three trend lines on Monday.
“It’s not about how the day starts or what occurs mid-day; it’s about the finish,” Alan emphasized.
He advised viewers to keep an eye on whether the SMAs can become support next, calling this a “key point to monitor.”
Impending volatile monthly close
With BTC/USD currently in a fluctuating state, the catalysts for volatility are more significant than ever.
Related: Bitcoin traders anticipate a $110K CME gap dip next as BTC price rises 1.5%
As reported by Cointelegraph, a series of US macroeconomic data is set to release throughout the week, primarily concerning employment.
Labor market weakness is a pivotal focus for policymakers as the Federal Reserve determines its course for interest rate adjustments.
The looming threat of a US government shutdown, expected to begin on October 1, introduces another layer of uncertainty regarding short-term risk-asset performance.
Additionally, the monthly and quarterly candle close approaches.
“A daily candle close above the 21-Day SMA would signal strength, but only if it sustains through the Monthly open,” Alan noted regarding this topic.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should perform their own research before making a decision.
