Key Points:

• Bitcoin is currently facing three significant moving averages on the daily chart right after an early week upswing.

• The importance of monthly and quarterly closings makes this situation even more critical, according to analysis.

• This week has several factors that could lead to price fluctuations for BTC.

Bitcoin (BTC) is at a challenging intersection with three “key” moving averages, and its future performance might hinge on overcoming them.

Keith Alan, co-founder of Trading Resource Material Indicators, suggested that traders should keep an eye on the upcoming daily closing.

Bitcoin Bulls and Support Levels

Although Bitcoin staged a notable recovery from nearly $109,000 at the week’s start, it seems the bulls aren’t completely out of the woods yet.

Alan analyzed the current market structure and highlighted a cluster of simple moving averages (SMAs) that are closely situated.

The 21, 50, and 100-day SMAs are all converging right where the Spot Price is active.

“They’re really very closely intertwined at this moment,” he noted in a fresh video update.

As it stands, BTC/USD is trading slightly above the 50SMA but rests below the other two trendlines on Monday.

Alan remarked, “It’s less about how you start or what happens during the day; it’s really about how you finish.”

He encouraged viewers to watch if the SMA transitions to support, saying, “That’s the key thing to look for.”

Potentially Unstable Monthly Closures

This ongoing indecision in BTC/USD highlights the significance of the forthcoming volatile catalysts.

As noted, a slew of US macroeconomic data is slated for release this week, largely centered around employment figures.

The labor market’s weakness remains a pivotal issue for policymakers as the Federal Reserve decides on interest rate strategies.

Moreover, the looming threat of a US government shutdown, expected to start on October 1, adds further uncertainty to short-term performance of risk assets.

In conclusion, the upcoming monthly and quarterly candle close is approaching.

“A daily candle above the 21-day SMA indicates strength, but only if it holds through the monthly opening,” Alan explained further.

This article does not provide investment advice or recommendations. All trading carries risk, and readers should conduct their own research before making decisions.