On Friday (September 8th), the price of Bitcoin (BTC) remained stable, and after some fluctuations at the end of August, the market seems to have entered a consolidation state.At present, the Bitcoin market lacks clear directional trends, but there is still a large amount of trading activity
On Friday (September 8th), the price of Bitcoin (BTC) remained stable, and after some fluctuations at the end of August, the market seems to have entered a consolidation state.
At present, the Bitcoin market lacks clear directional trends, but there is still a large amount of trading activity. According to CoinGlass data, BTC prices have only risen by 2.68% in the past 12 hours, but this has led to the liquidation of short positions of up to $30 million.
There is bidirectional liquidity in the market, but recent price increases have led to a decrease in liquidity in the upward direction of the market. Some major players have already sent approximately $155 million worth of Bitcoin to the cryptocurrency exchange.
More worrisome is that the supply of Bitcoin increased from 1.13 million on August 23 to 1.17 million on September 7, with a total of 40000 BTCs flowing in. Since September 1st, approximately 20000 BTCs have been sent to centralized entities, further strengthening the bearish sentiment among bulls.
There are two possibilities for the future trend of Bitcoin prices: one is to continue to rise by 2.68% and retest the 2023 upward trend line, which is approximately $29500. Another scenario is that prices may fall and retest support levels, with a minimum support of $25142. If they fall below this level, key support levels of $24267 and $21313 may be tested.
At present, the market is relatively stable, but major events or news may trigger price fluctuations. For example, the US Securities and Exchange Commission's (SEC) refusal to approve spot Bitcoin Exchange Traded Funds (ETFs) may affect market sentiment.
In addition, the August Consumer Price Index (CPI) data for the United States is about to be released, which is an important macroeconomic event that may affect the direction of Bitcoin prices. The number of non farm workers in the United States was 187000, slightly higher than the expected 170000, and the core price consumer expenditure (PCE) price index also increased. These data indicate that the Federal Reserve may not raise interest rates in September, which is advantageous compared to the special currency. But if the CPI data is higher than expected, it may lead to the Federal Reserve raising interest rates, which may have a negative impact compared to the special currency and other risky assets.
In summary, although the upward trend may increase the confidence of bulls, considering the current market outlook, this situation seems unlikely. On the contrary, the second scenario is more likely to occur, where prices fall and support levels are tested. In addition, historical data indicates that September is usually the worst month for Bitcoin prices, so the price decline may be consistent with this trend.
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