Bitcoin (BTC) remained below $26,000 as it approached the weekly close on September 3rd, despite a bearish trader sentiment. The price of BTC showed limited volatility over the weekend, trading within a narrow range of $200. This lack of direction resembled the behavior seen towards the end of August.
After the previous week’s two volatility events involving Grayscale and US regulators were erased from the charts, traders began to analyze the potential impact of various weekly close levels. One popular trader, Skew, highlighted the significance of the $25,900 level, stating that a candle body close below this level would imply a move lower towards the previous resistance at $24.3K.
In a bullish scenario, if BTC were to reclaim $26,000 and continue with a higher low in the fourth quarter, it would be considered less likely, according to Skew. However, a bearish trend could see BTC dropping below $20,000 once again.
Keith Alan, co-founder of Material Indicators, expressed caution regarding categorizing Bitcoin as either bullish or bearish based on recent events. Despite the volatility caused by Grayscale’s legal victory and the SEC’s delay on Bitcoin ETF decisions, Alan argued that the market structure of Bitcoin has remained unchanged.
Alan emphasized that both a breakout and a breakdown have yet to be confirmed or invalidated, suggesting that the current state of Bitcoin has not undergone any fundamental overhaul. He pointed out that $24,750 is the critical support level to watch, and failure to hold this level could lead to a bearish scenario, which he referred to as “bearadise.”
An accompanying chart showed the BTC/USD order book on Binance, revealing that buy liquidity was increasing just below the spot price at the $24,750 level.
It is important to note that this article does not provide investment advice. Every investment and trading decision carries risk, and individuals should conduct their own research before making any decisions.
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