Bitcoin's Corrective Cross Is Back: How Long the Dip Takes, How Deep

AI-generated source summary

The analysis focuses on Bitcoin's short-term and long-term price action, highlighting a potential corrective step with a target of 76,500 to 77,000, aligning with the green 55 EMA. This is supported by a 12-hour 5 EMA crossing under the 21 EMA, a signal observed across various timeframes historically, suggesting a corrective phase. Historically, such crosses are followed by a test of the 55 EMA, with a median duration of 1.5 days, and a high probability of price finding support around that level. The analysis also notes that historically, after touching the 55 EMA, Bitcoin tends to bounce, with a median return of +7.7% over 10 days. Specifically, a 6.1% drop from the touch close to $80,296 is observed, with a median bounce of +5% within 5 days. The 21 EMA is re-taken 97% of the time, with a median of 3.5 days. A failure to hold below $77,300 on the CME futures would greenlight corrective targets, likely on Friday. The daily trend is considered down, but the long-term trend remains supported by a higher low at $62,490. The analysis incorporates market maker ranges, indicating pricing between $73,500 and $80,500 for the September 18th quad expiry, aligning with the bounce study's range.

AI-generated summary based on the source content.