Bitcoin (BTC) is on the verge of retesting a long-term support level after BTC price action fell to its August monthly close, data shows.
BTC price: $23,000 on track
As of Sept. 1, BTC/USD reversed last week’s gains and is back below $26,000, according to Cointelegraph Markets Pro and Cointelegraph Markets Pro transaction view show.
Market participants saw a bullish case at the close, with Bitcoin holding onto a key long-term trendline and holding on to the $27,000 level.
The U.S. Securities and Exchange Commission’s (SEC) decision to delay a slew of bitcoin spot price exchange-traded fund (ETF) filings has forced reconsideration, with bitcoin dropping $1,000 on just a two-hour candle.
Now, observers worry that even current levels may not support the market for long.
“On-chain data suggests BTC lacks strong support below the $25,400 mark,” popular trader Ali Tell X (formerly Twitter) Subscribers.
“If BTC falls below this threshold, it could see a quick correction to $23,340.”
Ali uploaded a chart UTXO Realized Price Distribution (URPD) Metrics from on-chain analytics firm Glassnode.
It tracks the prices that created the current set of trade outputs and acts as a roadmap of possible price support and resistance levels.
For some, a break below $23,000 is not a surprise, as many traders and analysts are already eyeing that target.
Bitcoin Gradually Heads Towards Key Support Battlefield
Ongoing on-chain monitoring resource Material Indicators presents a similar grim picture for BTC/USD on daily (D), weekly (W) and even monthly (M) timeframes.
Related: ‘100% Bulls Hit’ Bitcoin Indicator Predicts BTC Price Floor at $23,000
Material Indicators, using its proprietary trading tool Trend Precognition, is signaling that bulls need to hold $24,750 to have a chance of locking in a rally.
“If price fluctuates and stays below $25,350, W signal will be invalidated, however, if support holds above LL $24,750, then there will be a good basis to bounce and retest resistance,” part of X’s commentary explained.
“We will be watching the monthly candle opening for signals from trend forecasting algorithms to gain insight into whether we can expect a continuation of the downtrend or a shift in monthly momentum to the upside.”
Also data from CoinGlass show August 31 triggered the largest liquidation of BTC longs since Bitcoin’s 10% plunge earlier this month.
These amounted to $41 million, for a total of $108 million across cryptocurrencies — still well below the daily total from two weeks ago.
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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.
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