Data suggests that Bitcoin (BTC) is heading for a renewed long-term support test after BTC price action retreated through August’s monthly close.
BTC/USD 1 hour chart. Source: TradingView
BTC price: streets point to $23,000
Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair reversed last week’s gains and is back below $26,000 since September 1st.
Market participants saw bullish momentum until the close, with Bitcoin holding a key long-term trendline and defending $27,000.
A decision by the U.S. Securities and Exchange Commission (SEC) to postpone a number of exchange-traded fund (ETF) spot Bitcoin price filings forced a rethink, with Bitcoin shedding $1,000 in just two hourly candles.
Now observers fear that even the current levels might not hold the market for long.
“On-chain data suggests $BTC does not have strong support below $25,400,” popular trader Ali told X subscribers (formerly Twitter).
“If BTC falls below this level, it could quickly drop to $23,340.”
Annotated UTXO chart for realized price distribution (URPD). Source: Ali/X
Ali has uploaded a chart of the UTXO Realized Price Distribution (URPD) metric from on-chain analytics firm Glassnode.
This tracks the price at which the current transaction results were created and serves as a roadmap for likely price support and resistance levels.
A drop to $23,000 would not come as a surprise to some as this target is already on the radar for various traders and analysts.
Bitcoin is slowly approaching the key battleground of support
Continuous on-chain monitoring resource Material Indicators provided a similarly bleak picture for BTC/USD on daily (D), weekly (W) and even monthly (M) timeframes.
Related: “100% Long Hit Rate” Bitcoin Metric Predicts BTC Price Floor at $23,000
Using signals from one of its proprietary trading tools, Trend Precognition, Material Indicators concluded that $24,750 needed to be sustained for the bulls to have any chance of an upside.
“If the price moves and stays below $25,350, the W signal will become invalid. However, if support holds above the LL at $24,750 there is a good basis to bounce off resistance and retest it,” explained part of the X comment.
“We will be watching for the monthly candle open to get a signal from the Trend Precognition algorithms to gain insights on whether we can expect an extension of the downtrend or a monthly momentum shift to the upside.”
BTC/USD 1 month chart with trend prediction signals. Source: Material Indicators/X
Meanwhile, data from CoinGlass showed that August 31 triggered the largest volume of BTC long liquidations since Bitcoin’s 10 percent plunge earlier in the month.
These totaled $41 million, with the total cross-crypto value standing at $108 million — still well below the daily value of two weeks earlier.
Crypto Liquidation Chart (Screenshot). Source: CoinGlass
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.
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