Bitcoin's Bearish Breakdown Looms, but Buying Opportunities Emerge Amid Low Volatility and On-Chain Indicators
Summary:
Bitcoin teeters on the edge of a bearish breakdown while holding onto the $25,000 support level. On-chain indicators and market conditions indicate the possibility of a positive trend and potential buying opportunities, but caution is advised due to low volatility and trading volumes. The upcoming US Consumer Price Inflation report could impact market direction. The article discusses the implications of these factors and advises readers to conduct their own research before making investment decisions.
Bitcoin is on the verge of a bearish breakdown, with a slight possibility that the $25,000 support level could hold. A drop below $24,750 could potentially lead to a further decline to below $20,000. However, there is a chance that the bullish momentum could revive at this level, presenting a buying opportunity for short-term traders. On the global market front, indicators such as the US dollar index and stock market performance suggest a positive trend for Bitcoin. The upcoming US Consumer Price Inflation print on September 13th could provide further direction to the markets. Recent price drops have caused several metrics to hit historical lows, leading to low liquidity and trading volumes. While this makes it challenging for bulls to push the price higher, long-term holders may start accumulating as the hype subsides. On the flip side, a potential short-term reversal level could be caused by the majority of short-term supply plunging into an unrealized loss. However, the market is currently experiencing extreme apathy and boredom due to low volatility, liquidity, trade volumes, and on-chain settlement volumes. Therefore, if a bullish reversal occurs, a significant number of sellers may enter the market, particularly around the break-even level of short-term buyers at around $26,000. In conclusion, the combined analysis of the DXY and on-chain data suggests that buyers could return earlier than expected, making the current price action a potentially lucrative opportunity for opening long positions in Bitcoin.
Published At
9/11/2023 7:49:46 PM
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