Bitcoin (BTC) closed the week below $26,000 on September 3rd, despite bearish trader sentiment. The cryptocurrency remained relatively stable over the weekend, operating within a tight range of $200. This lack of direction in price movement was reminiscent of the behavior observed towards the end of August.
Last week’s two significant volatility events, involving Grayscale and US regulators, seemed to have been erased from the charts. Traders now focused on the potential impact of various weekly close levels. One popular trader, Skew, pointed out that a candle body close below the higher low (HL) in June or $25.9K had not yet been seen. He identified $25,900 as the key level to watch for the current week. If the weekly close is below this level and the price encounters resistance around it early in the following week, it could indicate a move lower towards the previous weekly resistance at around $24.3K.
Looking ahead, Skew suggested that a “bearish scenario” could bring sub-$20,000 levels back into play. On the other hand, a bullish revival, which involves reclaiming $26,000 and establishing a higher low in the fourth quarter, was deemed less likely by Skew.
Keith Alan, co-founder of monitoring resource Material Indicators, warned against making definitive statements about Bitcoin’s bullish or bearish status based on recent events. He argued that despite the volatility caused by Grayscale’s legal victory and the SEC’s postponement of a decision on Bitcoin ETFs, there has been no fundamental overhaul of Bitcoin’s market structure. Alan asserted that nothing has changed as neither a breakout nor a breakdown has been confirmed or invalidated.
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Alan also pointed out that the support zone to watch is around $24,750. If the price fails to hold above this level, Bitcoin could enter a “bearadise” phase. An accompanying chart showed the BTC/USD order book on Binance, with buy liquidity increasing just below the spot price at the $24,750 zone.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
In conclusion, Bitcoin’s price remained relatively stable below $26,000 at the close of the week. Traders are closely monitoring the $25,900 level, which could indicate further downside if it serves as resistance. The overall market sentiment remains uncertain, with the possibility of both bullish and bearish scenarios. Investors should proceed with caution and conduct their own research.
