• About
  • Landing Page
  • Buy JNews
Newsletter
Bitcoin Press UK
  • Home
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Regulation
  • Market
  • Blockchain
  • Business
  • Guide
No Result
View All Result
Bitcoin Press UK
No Result
View All Result
Home Market

Calm Before the Storm? Bitcoin Consolidation Around $26K Approaching an End (BTC Price Analysis)

Editorial Team by Editorial Team
September 9, 2023
in Market
0
189
SHARES
1.5k
VIEWS
Share on Facebook Share on Twitter

After experiencing a significant downward move that brought Bitcoin’s price quickly close to the $25K threshold, bearish momentum has temporarily subsided, giving way to a phase of consolidation marked by low volatility.

Despite this, the most likely scenario for Bitcoin appears to be a period of sideways movement followed by a temporary retracement towards the 100-day and 200-day moving averages (MAs).

Technical Analysis

By Shayan

The Daily Chart

The recent wave of intense selling pressure has driven Bitcoin below critical support levels, including the lower boundary of the ascending channel, the 100-day moving average, and the 200-day moving average. These developments strongly suggest a prevailing bearish sentiment among market participants.

However, after finding support in the vicinity of the $25K region, the price has entered a consolidation phase characterized by the formation of smaller candles.

Notably, Bitcoin has started to exhibit a potential double-bottom pattern, a well-recognized bullish reversal pattern, in close proximity to the significant support zone around $25K. This pattern hints at the possibility of a retracement towards the 200-day MA, situated approximately at $27.6K.

Nevertheless, it’s essential to acknowledge the lingering risk of increased selling pressure and the potential for another decline below the $25K mark. Hence, traders should maintain an attentive watch on price action around this crucial level to mitigate further losses.

Source: TradingView

The 4-Hour Chart

Zooming in on the 4-hour timeframe, it can be observed that the downward trajectory came to a halt as Bitcoin reached the vital support zone at $25K, triggering a brief period of consolidation characterized by subdued volatility.

However, as the price reversed course and surged towards the critical 61.8% Fibonacci level, a key target in the correction phases of the market, selling pressure intensified, leading to another reversal. Consequently, Bitcoin resumed an impulsive retracement, driving its price back toward the $25K range.

Related articles

Crypto Market Update

Crypto Market Update: Altcoins Waver as Bitcoin Dominance Hits 51.6%

November 21, 2023
Bitcoin Options Record

Bitcoin Options Boom: Deribit Hits Record $15B Open Interest

November 21, 2023

Yet, there is an interesting divergence between the price and the RSI indicator, signaling a potential shift in the trend’s direction toward a bullish rebound. In the upcoming days, the $25K threshold holds significant psychological support, and if sellers fail to push the price below this level, the market may experience a swift rally aimed at reaching the 200-day MA.

Source: TradingView

On-chain Analysis

By Shayan

Observing the BTC Fund Holdings metric dwindling to its lowest point in more than 2 years, with a total of 684,435 BTC, carries notable importance. The recent dip in BTC Fund Holdings metric, marking a 30-month low, underscores a substantial transformation in the realm of Bitcoin investments.

The decline can be interpreted as a reflection of a cautious sentiment prevailing among investors and institutional players alike. It reaffirms the value of this metric as an indicator of the demand for indirect exposure to Bitcoin. This shift in sentiment may be fueled by concerns pertaining to regulatory adjustments, heightened market volatility, or other factors influencing Bitcoin as an investment asset.

As previously noted, the drop in holdings may also be attributed to entities actively managing their portfolios, potentially capitalizing on profits. This serves as a reminder of the dynamic nature of the cryptocurrency landscape and the adaptability of investors in response to ever-evolving market conditions.

This development prominently underscores the pivotal role played by institutional investors, trusts, exchange-traded funds (ETFs), and funds in shaping the dynamics of the Bitcoin market, as their actions wield considerable influence over Bitcoin’s price trajectory and overall market stability.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Share76 Tweet47

Related Posts

Crypto Market Update

Crypto Market Update: Altcoins Waver as Bitcoin Dominance Hits 51.6%

by Satoshi Nakamoto
November 21, 2023
0

The crypto market is experiencing a wave of fluctuation as altcoins show signs of uncertainty while Bitcoin asserts its dominance....

Bitcoin Options Record

Bitcoin Options Boom: Deribit Hits Record $15B Open Interest

by Satoshi Nakamoto
November 21, 2023
0

Bitcoin options trading on the Deribit platform has reached a new milestone, with open interest hitting a record high of...

Bitcoin Searches UK

Exploring the Surge: UK’s 826% Increase in Bitcoin Searches Signifies Market Optimism

by Satoshi Nakamoto
November 19, 2023
0

Bitcoin's recent surge in price, peaking above $35K for the first time since May 2022, has sparked optimism among investors....

Financial market concept with rising graph, US dollar symbol, Bitcoin icon, and inflation data charts indicating economic trends.

US Inflation’s Impact: Stocks & Crypto in Global Market Spotlight

by Editorial Team
November 13, 2023
0

Key Takeaways: U.S. Inflation Data: Markets on hold for consumer price figures influencing the Federal Reserve's rate decisions. European Stock...

Binance Coin Price Is Hanging By A Thread – Is BNB Going To $185?

How Binance Turned Its Failed Token ICO Into A Billion Dollar Windfall

by Editorial Team
October 6, 2023
0

The mythology surrounding the rise of the world’s largest crypto exchange is impressive. However, a Forbes investigation reveals that Binance’s...

Load More
  • Trending
  • Comments
  • Latest

Is BlackRock Secretly Influencing Bitcoin Price? Here’s the Truth.

September 19, 2023
Crypto casinos: The new ‘Wild West’ hooking gamblers

Crypto casinos: The new ‘Wild West’ hooking gamblers

September 19, 2023

This Week's Crypto Snapshot: TIA and YFI Soar; GAS, TRB, MKR … – Bitcoin.com News

November 17, 2023

Critics Alarmed as 2 Major Mining Pools Dominate Over 50% of … – Bitcoin.com News

November 17, 2023

How to Increase the CRT ?

0

Theme with seo optimization

0

Increase the theme speed by seo optimization

0

Promote the theme by google adsense

0
Germany Bitcoin Price Surge

Germany’s Crypto News Spurs 4.5% Bitcoin Price Surge Amidst Recovery

November 21, 2023
Crypto Market Update

Crypto Market Update: Altcoins Waver as Bitcoin Dominance Hits 51.6%

November 21, 2023
Crypto Funds Inflows

Crypto Funds Gain Traction: Inflows Surge for BTC, ETH, ADA

November 21, 2023
Bitcoin Options Record

Bitcoin Options Boom: Deribit Hits Record $15B Open Interest

November 21, 2023
  • About
  • Contact Us

© 2021 BitcoinPress

No Result
View All Result
  • Contact Us
  • Homepages
  • Business
  • Guide

© 2021 BitcoinPress