Bitcoin (BTC) closed below $26,000 for the week ended Sept. 3, with analysis dispelling traders’ undue pessimism.
BTC Price Closes Weekly at $25,900
Data from Cointelegraph Markets Pro and transaction view It shows that the bitcoin price avoided volatility over the weekend, operating in a tight range of $200.
The lack of direction created a strong sense of déjà vu among market participants, with similar behavior seen at the monthly close in August.
With all traces of last week’s two volatile events involving crypto asset manager Grayscale and U.S. regulators wiped off the charts, traders weighed the impact of various potential weekly closes.
“As far as market structure is concerned, have yet to see a candle body close below June HL or $25,900,” popular trader Skew wrote Part of the X thread.
Skew mentioned a higher low (HL) below $25,000, with $25,900 being the key line for recovering lost ground this week.
“This is important because if the 1W closes below and the price trades this area as resistance early next week, it will imply lower prices towards the previous 1W resistance ~$24.3K,” he added.
Looking ahead, a “bearish scenario” could bring sub-$20,000 levels back into play. Skew predicts that a bullish recovery, including a reclaim of $26,000 and a continuation of higher lows in the fourth quarter, is “unlikely.”
Bitcoin ‘bearadise’ threat remains
Meanwhile, Keith Alan, co-founder of monitoring resource Material Indicators, summed up last week’s events with a caveat about how bullish or bearish Bitcoin really is with clear statements.
Related: Bitcoin vs. RSI Showdown as BTC Price Drops to New Two-Week Low
The rise and fall in volatility, respectively, came as Grayscale gained a legal victory over the U.S. Securities and Exchange Commission (SEC), which subsequently delayed a decision on the first U.S. bitcoin spot price exchange-traded fund (ETF).
However, Allen believes that behind the scenes, the Bitcoin market structure has not undergone any fundamental reforms.
“On the first day of the September monthly candle, volatility continues, traders seem to have forgotten ‘the trend is your friend,’ and they cling to opium and argue for crap that fits their bias,” he said in wrote in an article. X posts September 2.
“The reality is that nothing has changed because neither the breakthrough nor the collapse has been technically proven or invalidated.”
Reiterating existing theories, Allen continues to see $24,750 as a support area to watch, one that Bitcoin risks entering if it fails.
The accompanying chart shows BTC/USD order books on Binance, with buy liquidity immediately increasing to spot prices below the $24,750 area of interest.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
Svlook
