Bitcoin’s price has remained steady, causing both cautious optimism and skepticism among traders.
As the weekly close on September 3rd approached, Bitcoin continued to hover below the $26,000 mark, showcasing limited volatility over the weekend. This situation prompted a sense of déjà vu for market participants, reminiscent of the behavior observed during the previous month’s close.
Despite the recent fluctuations caused by Grayscale’s legal victory against the U.S. Securities and Exchange Commission (SEC), followed by the SEC’s decision to postpone the approval of the first U.S. Bitcoin spot price exchange-traded funds (ETFs), traders seem reluctant to make definitive calls about Bitcoin’s bullish or bearish trajectory.
One well-known trader, Skew, noted that from a market structure perspective, there has been no weekly candle body close below June’s higher low (HL) of $25.9K. This level is now seen as critical, as closing below it could indicate a move towards the previous weekly resistance at around $24.3K.
Skew added that while a bearish scenario might bring Bitcoin back into the sub-$20,000 range, a bullish resurgence, marked by Bitcoin reclaiming $26,000 and establishing a higher low in the fourth quarter, appeared less likely.
Keith Alan, co-founder of monitoring resource Material Indicators, supported the notion that the recent market volatility did not translate into a fundamental change in Bitcoin’s market structure. He cautioned against hastily embracing bullish or bearish narratives, stating that “nothing has changed” until a confirmed breakout or breakdown occurs.
Alan emphasized that the $24,750 support level should be closely monitored, as Bitcoin could enter a “bearadise” phase if it fails to hold above this critical point. He illustrated this point with a chart showing buy liquidity accumulating just below the spot price at the $24,750 zone on Binance’s BTC/USD order book.
In summary, Bitcoin’s recent stability has led traders to speculate about its next significant move, with a particular focus on the $24.7K support level as a potential pivot point. The absence of a confirmed breakout or breakdown leaves the market in a state of uncertainty, prompting caution among analysts and traders alike.