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🥇 Bitcoin Struggles Against Gold 

Word On The Street: Bitcoin under performed with its rangebound price action standing in stark contrast to the new record highs achieved by gold.

The details:

• While Bitcoin managed to avoid retesting the $56,000 lows from the previous day, it failed to make a significant impact on market observers.

• Both gold and equities are currently outperforming Bitcoin, with gold reaching a new all-time high of $2,500 on the day.

• Bitcoin’s recovery from its macro lows at the beginning of August has lagged behind other asset classes.

Why it matters: Historically, Bitcoin tends to follow gold's movements, with a typical lag of around three months.

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Traders Corner (Premium)

Welcome, Traders!

Reports from our analysts today:

• Bitcoin Technical Analysis

• Ethereum Technical Analysis

• Solana Technical Analysis

TECHNICAL ANALYSIS
💸 Bitcoin Technical Analysis

Bitcoin is trading around $58,112.04, which is slightly below the VWAP line and within the lower standard deviation bands. This indicates that the price is leaning towards bearish momentum, as it is below the VWAP average.

VWAP Bands:

  - Upper Band (1st Standard Deviation): The upper VWAP bands are around $58,670.88 to $58,891.83. These levels are currently acting as resistance.

 - Middle VWAP Line: This central line (around $58,449.93) acts as a pivot point. The price being below this line shows that the market is currently experiencing selling pressure.

 - Lower Band (1st Standard Deviation): The lower VWAP bands range from $58,008.03 to $57,787.09. This area represents potential support levels where buying interest might emerge if the price drops further.

3. Price Trend: The chart shows a clear downtrend, with Bitcoin's price consistently moving lower after reaching a peak earlier. The price attempted to break above the middle VWAP line but failed, leading to a continuation of the downtrend. The price action indicates that sellers are currently in control, pushing the price down to test lower support levels.

Relative Strength Index (RSI)

1. Current RSI Value: The RSI is at 23.70, indicating that Bitcoin is currently oversold. An RSI below 30 typically suggests that the asset is undervalued and could be due for a potential bounce back or reversal. However, in strong downtrends, oversold conditions can persist for an extended period, which might be the case here.

2. Divergence: There appears to be a divergence forming between the RSI and the price. While the price has made lower lows, the RSI is showing signs of flattening out. This divergence could signal a weakening in bearish momentum, potentially indicating an upcoming reversal or at least a temporary relief rally.

Support and Resistance Levels

Based on the VWAP bands and the price action:

1. Resistance Levels:

  - Immediate Resistance: Around $58,228.98, where the price last tried to break above but was rejected.

 - Strong Resistance: At the upper VWAP band ($58,670.88 to $58,891.83), where significant selling pressure could re-emerge if the price attempts a rally.

2. Support Levels:

 - Immediate Support: Around $58,008.03, as per the lower VWAP band.

 - Critical Support: If the price breaks below $58,008.03, the next significant support level is at $57,787.09, where buyers might step in more aggressively.

Potential Scenarios

Given the current setup, a few potential scenarios could unfold:

1. Bullish Reversal: If the RSI divergence plays out and buyers begin to accumulate at the support levels, we might see a short-term reversal, with the price targeting the middle VWAP line around $58,449.93 and potentially moving towards the upper VWAP bands.

2. Continuation of the Downtrend: If selling pressure persists, Bitcoin could break below the immediate support at $58,008.03, moving towards the next critical support at $57,787.09. This scenario is supported by the fact that the price is below the VWAP and in a clear downtrend.

3. Consolidation: If neither buyers nor sellers dominate, Bitcoin could enter a consolidation phase between the lower VWAP band and the middle VWAP line, ranging between $58,008.03 and $58,449.93, as the market waits for a catalyst to determine the next direction.

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