Bitcoin Dips But Holds $26K Support amidst Optimism for Late-Year Rally
Summary:
Bitcoin experienced intraday lows following the Wall Street opening on September 26, hovering around the $26,000 support level. Binance data indicated little downward pressure on Bitcoin, with key levels around $24,750 and $28,000 under close watch. As per financial commentator Tedtalksmacro, Bitcoin is set for a "positive seasonality" period, traditionally seen in October. Bitcoin may make a late-year recovery as the next block subsidy halving approaches.
As the Wall Street trading day commenced on September 26, Bitcoin (BTC) experienced a dip to intraday lows, steering clear of any major volatility. Data from TradingView and Cointelegraph Markets Pro depicted the top cryptocurrency operating within a narrow band and maintaining $26,000 as its base level. Despite several challenges at the start of the week, this support level remained at the moment.
Analyzing the market state on Binance, the largest global exchange, Material Indicators projected potential upcoming market occurrences. There exists a disparity of $44 million in liquidity between the bids at $25,000 and the current market price; contrastingly, overhead resistance amounts to a mere $6 million, implying no considerable downward pressure on the price. The observers await whether this liquidity gets consumed, relocated or replenishes.
Bulls are expectantly watching the $24,750 mark, Bitcoin's mid-June low, as a crucial line of defense, as Material Indicators reiterated. Meanwhile, Daan Crypto Trades, a popular trader and analyst, stated that the current scenario was "not all that bad". He pointed out two pivotal levels - the 200-week moving average (MA), pegged at $28,000, and a horizontal support zone near $25,000 - that could possibly bring about a new Bitcoin price trend.
According to financial commentator Tedtalksmacro, Bitcoin is stepping into a "positive seasonality" phase. He explained that historically, the month of October has been profitable for Bitcoin hodlers, though 2022 proved to be an exception due to fluctuating US benchmark interest rates. Bitcoin is now functioning in an extraordinary environment in 2023 with rates soaring over 5% and is likely to stay at these levels while the world's central banks attempt to arrest inflation.
Data over the last three years, presented in an accompanying chart, suggests that October has been Bitcoin's most fruitful month on average. CoinGlass, a monitoring resource, supports this assertion. As reported by Cointelegraph, Bitcoin is expected to bounce back later in the year, as we approach the next block subsidy halving. Please note, this article does not serve as investment advice or suggestions. All investments and trading decisions encompass risk and individuals should undertake their own due diligence before making decisions.
Published At
9/26/2023 2:34:39 PM
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