Bitcoin Price Tests $109K as Double Top Signals $100K Reversal Risk
Bitcoin's price consolidated around $109,500 on September 28, with market liquidity thinning over the weekend. Following a US Fed rate cut on September 18, Bitcoin experienced a sell-off, dropping below $110,000 for the first time in 20 days.
- Strategy CEO Michael Saylor remains bullish, encouraging increased BTC purchases despite recent volatility.
- Strategy's total BTC reserves fell in value by 5%, from $74 billion to $70 billion.
Technical Analysis
- Bears have shown strong resistance near $110,000, with repeated rejections.
- A double top formation is evident in the BTCUSD daily chart, signaling a potential downside target of $100,780.
- The Relative Strength Index (RSI) indicates low buying pressure as it remains near oversold territory.
If Bitcoin fails to surpass $110,000, critical support is at $106,500, with psychological support at $100,000 if breached. However, reclaiming $112,000 could invalidate this bearish outlook and allow a retest of $119,000 resistance.
In conclusion, Bitcoin's outlook appears fragile, with technical indicators suggesting possible retracement to $100,000 unless liquidity improves. Traders are monitoring whether Saylor's buying encouragement will influence other corporate actors to stabilize prices as September ends.