On September 8th, Bitcoin prices slightly decreased by 1.75% to nearly $25850, almost erasing all the gains made a few hours ago
On September 8th, Bitcoin prices slightly decreased by 1.75% to nearly $25850, almost erasing all the gains made a few hours ago.
Technical adjustments in Bitcoin prices
In September, the price of Bitcoin (BTC) remained difficult to find direction, fluctuating between a slight increase and a decrease in liquidity.
The main reason for the hesitancy in trading is the continued delay in Bitcoin spot ETFs, as well as the uncertainty of the Federal Reserve's interest rate decision this month, as ARKInvest warned.
Therefore, the price of Bitcoin tends within a narrow trading area (red area in the figure below), with a resistance level of $26450 and a support level of $25550.
This may prompt trading to buy at support levels and sell at resistance levels.
The same strategy may occur during the sell-off on September 8th, when there was a lack of buying momentum near the resistance level of $26450, leading to a correction in the BTC/USD exchange rate.
Exchange's Bitcoin Reserve Overrides
In addition, small fluctuations in the balance of BitBTC on the exchange may also lead to a decline in Vai prices.
It is worth noting that as of September, these Bitcoin reserves have surged from over 2.03 million Bitcoins to 2.05 million BTCs.
Simply put, the more BTCs on the exchange, the greater the potential selling pressure in the market, exacerbating the deterioration of market sentiment.
Clearing long positions
The Bitcoin sell-off period on September 8th also triggered a wave of long liquidation in derivatives.
As of September 8th, the decline in BTC spot prices has led to the liquidation of long positions of $7.78 million.
In other words, the transaction was forced to sell Bitcoin collateral assets to recover the borrowed amount, once again inflating the selling pressure in the market.
Where will BTC prices go next?
Technically speaking, the sell-off on September 8th pushed Bitcoin prices below the 50 cycle 4-hour index moving average (EMA50-4H), which is the red wave shown in the figure below.
This measure increases the possibility of BTC continuing to decline to $25550 in the coming days.
This level coincides with the support convergence point composed of a horizontal level (the lowest end of the red bar) and a downward trend line (black line).
On the contrary, withdrawing the 50-4 hour moving average as support may lead to BTC/USD retesting for a potential breakthrough of $26000.
In this case, BTC prices may surge to 200-4HEMA (Green Wave) in September, approaching $26975.
It has to be said that the recent market situation has indeed been too boring, either it is an infinite sideways trend, or it is how much it rises or falls, and the market is lifeless and lifeless.
But everyone must be patient and slowly overcome it. The current stage is the darkness before dawn. Don't make contracts, hold onto the spot, and witness the arrival of the bull market with Guage!
#BTC # # Cryptocurrency#
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