Cryptocurrency Market update – Sep-01-2023
Bitcoin gave back all of Tuesday’s rally profits on Thursday after the Securities and Exchange Commission (SEC) put on hold any decision on a draft of Bitcoin exchange-traded fund (ETF) applications. The SEC has now pushed back the latest deadline until mid-October. While this outcome was expected, a degree of hope had been building in the cryptocurrency market that a spot Bitcoin ETF would soon be announced.
Bitcoin is headed for a long-term support retest, reversing gains seen last week, back below $26,000 as of Sep. 1.
I will watch to see how it reacts further at this area-$26k, but the daily & weekly charts are starting to look a little ugly. Below $25,300, I will cut 20%. Below $24,700, the last weekly cycle low, I will have to consider cutting the entire position and going into a wait and see position. Below $24,700 opens up some serious downside targets and I prefer to play it safe below that level.
Price action is the king in the end, and when a market does not respond to a very favorable environment, then we need to pay attention and accept what we cannot control.
BTC daily chart shows this week’s gains have been reversed (shedding $1,000 over in just two hourly candles) and left the pair eyeing a short-term support around $25.2k. The current spot price is now below all moving averages(MAs), a negative set-up, leaving further downside the path of least resistance.
Today’s dump puts the near-term outlook back into a grey area. Support continues to be at the $24,500 to $25k spot level. Resistance has proven overwhelming above $30k for 14 months despite hope for a BTC ETF.
Overall, the daily time frame is neutral and may slightly bullish if we don’t lose the support level.
Chart 1. This week’s gains have been reversed (shedding $1,000 over just two hourly candles) and left the pair eyeing a short-term level of support around $25.2k. : Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
BTC weekly chart shows a dominant decline which suggests a poor action of BTC with the 10-week MA trending low.
Let see if Bitcoin will hold a key long-term trendline and preserve $27k. I will only get worried if we lose the weekly cycle low.
If the 10-week MA (located around the $27,500 mark), is tested, a breakout above it would likely result in further rally and a possible retest of the $30K level.
ETH/USD Is still holding up better than BTC as the range- bound consolidation favors the bulls. It’s still trying to keep a short-term series of higher lows in place. Still room for more upside, the next move is likely to be at the higher part of the range bound, though may go sideways for a while, up till to the end of the 60-day cycle before the resumption of the uptrend.
The structure is still intact, and staying above the critical level of the 10-day MA and ultimately $1540 support level allows ETH to remain bullish.