Bitcoin Faces September Uncertainty as Bulls and Bears Battle for Control in Narrow Price Range
Summary:
Bitcoin (BTC) hovers within a narrow price range, with historical data suggesting a possible September drop. The rise of the US dollar and uncertainty about the direction of the breakout contribute to short-term pressure for Bitcoin. However, lower levels may attract buyers as the approval of Bitcoin ETF applications could limit the downside. The support levels are analyzed based on charts of the top-10 cryptocurrencies.
Bitcoin (BTC) has been fluctuating between the price range of $25,333 and $26,156 since September 1. While a volatility squeeze often leads to increased volatility, it is uncertain which direction Bitcoin will break out in. According to CoinGlass data, Bitcoin has historically experienced a drop in September for six consecutive years. This historical data may deter bullish investors and give confidence to bearish ones. Furthermore, the United States dollar index (DXY), which typically has an inverse correlation with Bitcoin, has seen a significant increase recently. These factors suggest that Bitcoin could face downward pressure in the short term. However, lower price levels could attract buyers, as the potential approval of Bitcoin spot exchange-traded fund applications may limit the downside. Analysts believe that such an event would be highly positive for Bitcoin, and positive news in this regard could drive prices higher. From a macro perspective, there may be a near-term weakness, but it is likely that lower levels will be met with purchases. So, watch out for important support levels. Let's analyze the charts of the top-10 cryptocurrencies to determine these levels. In Bitcoin's case, it has been trading below $26,000 for the past two days, with bears attempting to push the price towards the critical support at $24,800. The downsloping moving averages suggest an advantage for sellers, but a developing positive divergence on the relative strength index (RSI) indicates a weakening bearish momentum. For a relief rally to commence, buyers need to drive and sustain the price above $26,833, indicating that Bitcoin may remain within the range of $24,800 and $31,000. On the flip side, if the bears manage to sink the price below the support zone of $24,800-$24,000, it could accelerate selling and push the price to $20,000.
Published At
9/6/2023 6:02:23 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.