Countdown to the Monthly Close is On
Bitcoin (BTC) is entering the last week of September with a retest of $26,000 as it continues to trade within a stubborn range. The cryptocurrency had an unimpressive weekly close, setting the tone for what has been a lackluster month for BTC price action. As September comes to a close, Bitcoin still lacks direction as it remains stuck in a sideways trend.
BTC Price Weekly Chart Prints "Death Cross"
Bitcoin's price performance deteriorated after the weekly close on September 24, with BTC/USD dropping to $26,000. This level has managed to hold as support for now. Commentators have noted liquidations occurring for long and short BTC positions, indicating uncertainty in the market. Popular trader Rekt Capital suggests that this price behavior could be a repeat of previous patterns, with a potential downside target near $20,000. Meanwhile, Keith Alan of Material Indicators identifies a "death cross" on the weekly chart, indicating the weakness of recent price action.
September 2023 Clings to "Green" Status
Despite the recent weakness, Bitcoin is still in positive territory for September overall. According to CoinGlass, BTC/USD is up 0.8% month-to-date. While this may seem modest, September is typically a bearish month that precedes more substantial upside in October, which is informally known as "Uptober" among cryptocurrency investors. Analysts believe that October could be a turning point for Bitcoin and the total crypto market cap.
PCE Data and Fed's Powell Headline Macro Week
This week, the market will be focused on the release of U.S. gross domestic product figures for Q2 and Personal Consumption Expenditures (PCE) data. Additionally, a speech from Jerome Powell, chair of the Federal Reserve, will shed light on the future economic policy. The language used by Powell and other policymakers will be closely watched to determine how this will impact Bitcoin and crypto markets.
Analysis Dismisses BTC Exchange Balance Drop
Bitcoin's declining balances on exchanges do not necessarily indicate a bullish trend, according to analyst Willy Woo. He argues that the synthetic nature of exchanges' BTC balances means that this decline does not represent a decrease in liquidity or scarcity. Woo suggests that the approval of a Bitcoin spot price exchange-traded fund (ETF) in the U.S. would help address this issue.
Bitcoin Offers "Fascinating" 2020 Similarities
Despite the current price performance, some analysts remain bullish on Bitcoin. One trader known as Moustache points out similarities between the current market conditions and those of 2020. He believes that the current levels could be the last chance to "buy the dip" in 2023 and highlights the importance of the 200-week exponential moving average (EMA) as support.
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