The price of Bitcoin (BTC) is lower at the time of writing, and while looking at the performance in the daily chart. However, as it is, buyers since have a chance because the series of lower lows, especially on September 21 was with light trading volumes.
Technically, this doesn’t invalidate the uptrend motion set by the September 18 and 19 bull bars, looking at price action. As it is, traders can look for buying opportunities on dips especially as long as prices are above the $25,500 support area established in the second half of August 2023.
The leg up, going forward, will likely be triggered by fundamental factors that will catalyze demand. However, losses below $25k may slow down the uptrend, heaping more pressure on buyers.
Short-term Bitcoin Holders Are In Red
On September 21, BTC prices slid, losing roughly 3% and reversing gains posted earlier this week. With this contraction, Glassnode research now shows that speculators, who are mostly short-term holders, are in panic mode.
This development is amid general confidence amongst traders. Next year’s Bitcoin halving event, for example, is being interpreted as a bullish event that might spark a bull run.
However, before then, the delay of the Mt. Gox creditor repayment plan by another year is supportive of the prices. Nobuaki Kobayashi, the Mt. Gox trustee overseeing the defunct exchange’s estate, said the deadline has been pushed to October 2024 after the approval by a Tokyo District Court.
Bitcoin (BTC) Price Analysis
There is a three-bar formation in the daily chart though the leg down on September 21, as mentioned earlier, is with light trading volumes. Accordingly, the uptrend remains from an effort-versus-volume analysis.
Aggressive traders can search for entries as long as prices are trending above the $25k to $25.6k support zone established in the second half of August.
However, in the short-term, the first local support is at $26.3k, around September 21 lows. Any break below this line with rising volumes might see BTC drop to $25.6k, an opportunity for swing traders. Conversely, gains above $27.4k, or this week’s high, may be the foundation for expansions above $28k and in a refreshing reversal.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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