Bitcoin Price Levels to Monitor as September Approaches
Bitcoin experienced a decline overnight, falling significantly below its March peak, with investors eagerly seeking the next catalyst to propel prices higher, particularly in a month historically known for underperformance by the pioneer cryptocurrency.
Data from crypto analytics platform Coinglass reveals that Bitcoin has only shown a positive return three times in September over the past decade, indicating a challenging month for the digital asset.
Currently trading approximately 18% lower than its March high, Bitcoin has faced challenges in recent times, with the launch of spot Bitcoin ETFs in January and the halving event in April fading into the background.
As of the latest data, Bitcoin’s price hovers around $60,000, having dipped below $59,000, a stark contrast to its peak above $73,000 earlier in the year.
Technical analysis indicates that Bitcoin has been moving within a descending channel since July, with trading volumes on platforms like Coinbase remaining subdued, signaling waning investor interest in the cryptocurrency.
A notable bearish signal emerged as the 50-day moving average crossed below the 200-day MA, forming a ‘death cross’, typically a precursor to a downtrend. Furthermore, Bitcoin’s recent close below the 50-day MA suggests a potential dampening of short-term momentum without a fresh bullish narrative.
Given the recent volatility in Bitcoin and other risk-on assets, it is crucial for investors to monitor key price levels. In the bullish scenario, a breakout above the descending channel’s upper trendline could propel Bitcoin towards $68,500 and potentially retest $72,000, near its all-time high.
Conversely, continued selling pressure could drive prices down to $53,000, offering a potential buying opportunity, while a more significant correction might see Bitcoin testing support around $47,000, approximately 20% below recent levels.
It is important to note that the insights shared here are for informational purposes only, and readers are encouraged to conduct further research and due diligence before making any investment decisions.
