Bitcoin Market Update Sept 9 2024 [ 1 yr Cylce Ends Sept 11 ]

Introduction

Today, we're diving into the current state of Bitcoin, focusing on our hourly chart. We're observing what seems to be a potential dead cat bounce towards one of our levels on the Square of Nine. This chart is populated with blue lines representing various octaves on the Square of Nine, which musicians may find familiar. We've marked extremes in purple or pink, indicating key levels that could play a significant role in today's market movements.

In our last tutorial, we established our main trend, which remains active. We had discussed implementing another 45° angle around the underbelly of our previous levels. It appears that the crossing of these two angles could lead to a significant reaction in Bitcoin's price. If Bitcoin fails to exceed certain resistance levels, we can expect a downward movement.

At this time, Bitcoin is approximately at the 53 level, bouncing upwards at a 90° angle in price. While there exists a possibility for further upward movement, maintaining above the 45° angle is crucial. If we do see weakness at the crossing point, a roll back down is likely. Particularly, we need to surpass the 1 time 2 angle to secure more upward momentum.

Looking ahead, we anticipate a possible move up to retest recent highs by the 23rd, particularly as the Moon transitions back into Taurus. Historically, this phase has been significant for market movements, often correlating with a bottoming pattern—though not always at an extreme low. It could indeed materialize as a higher low, similar to patterns we've witnessed previously.

On a broader timeline, we’ve seen considerable price action since the September 11 low from the previous year. Patterns suggest we might experience a breakdown similar to what we faced last year. As we reflect on almost a year since the significant low, we maintain a cautious outlook, monitoring cycles and expecting changes as we approach the end of this month.

I want to emphasize the patterns we’ve observed. Each cycle lasts around 180 days, and the current phase is closing in on a crucial point. Amidst this, I've established a stop just below the 34 area, an important level to watch. If we're going to witness a significant upward movement, it must commence by October.

As we approach the end of September and transition into October, historical volatility suggests we should brace for potentially dramatic market swings. Traders should remain proactive, particularly with Gann’s forecasting principles guiding our analyses.

In summary, should the market reject the anticipated levels, Bitcoin’s trajectory could take a turn, heading back down to test support around the 38,000 mark. If we witness breakdowns through key January levels, that could signal broader market weakness.

In terms of our daily indicators, this may present a fake-out rally. The stochastic indicators and RSI reflect potential upward movement, but we watch carefully for any signs of weakness, particularly following the 23rd.

In closing, while we’re positioned for a potential bullish move, we must be vigilant of the volatility surrounding us. September’s conclusion may lead into an exciting October, mapping a path for both cautious observation and strategic investment.

Keyword

Bitcoin, market update, September 2024, dead cat bounce, Square of Nine, resistance levels, trend, cycles, volatility, Gann forecasting.

FAQ

1. What is a dead cat bounce in the context of Bitcoin?
A dead cat bounce refers to a temporary price increase after a significant decline, potentially misleading traders into thinking a recovery is underway before further losses occur.

2. What is the significance of the Square of Nine?
The Square of Nine is a tool used by traders and analysts to identify potential price levels based on mathematical principles, including the concept of octaves.

3. How does the transition of the Moon impact market movements?
Historical patterns suggest that astrological events, such as the Moon moving into different signs, can correlate with market tops and bottoms, influencing trader behavior.

4. Why is the date September 11 important for Bitcoin?
September 11 marks a significant low point from the previous year, making it important to observe any repeating patterns or potential market changes as that date approaches.

5. What are the implications of failing to break key resistance levels?
Failing to break through critical resistance levels might indicate a lack of momentum and can lead to a downturn as traders lose confidence in further upward movement.