Bitcoin (BTC) neared its monthly low on September 4 as cryptocurrency markets continued to react to the plunge in U.S. tech stocks.
BTC/USD 4-hour chart. Source: TradingView
Nvidia’s Trouble Spreads to BTC Prices
According to data from Cointelegraph Markets Pro and TradingView, Bitstamp’s lowest price was $55,602, a level not seen since August 8.
BTC/USD has started filling the wick of a bearish candle towards $50,000 after recovering 40% since the August crash.
But this time, it wasn’t Japanese stock market performance that was the driving force, but tech giant Nvidia Corp. The U.S. subpoena sent shares of the company crashing, and riskier assets quickly followed suit.
Gold, which hit an all-time high of $2,500 a few weeks ago, fell as much as 1.3% on September 3.
XAU/USD 4-hour chart. Source: TradingView
Nonetheless, Japan’s Nikkei 225 reacted immediately to the previous day’s decline, falling 4.2% in the Asian trading session on September 4, putting pressure on Bitcoin and altcoins.
“September started with a broad-based rush,” the trading information site The Kobeissi Letter wrote in part of its latest commentary on X.
source: Kobe City Letter
Popular trader CrypNuevo analyzed the BTC price action and explained the ongoing candle wick filling, with a short-term target of $51,500.
“The 7-day liquidation reached $57,000 and the long wick of $56,600 (4 hours) was filled. The execution for liquidity and the wick fill prediction are complete,” he wrote.
“We are watching for a potential bounce around this area and if it gets lost, we will fill our daily wick at $51.5k.”
BTC/USDT chart (screenshot). Source: CrypNuevo/X
Another trader, Zell, also saw a similar reversal potential.
“A bullish divergence is likely to form over the next 12 hours as Bitcoin tests support levels again,” he told his X followers that day, along with a chart showing the Relative Strength Index (RSI) readings.
BTC/USDT 12-hour chart with RSI data. Source: Jelle/X
“Unfortunately, it didn’t show any upside at first, but now that it has reached its downside target, hopefully this means it is ready for a relief rally soon,” Credible Crypto added.
“Good reviews for OI here, but no sign of buyers coming in yet.”
BTC/USD 4-hour chart. Source: Credible Crypto/X
Traders expect Bitcoin volatility to continue.
According to data from monitoring resource CoinGlass, as of this writing, cryptocurrency long liquidations in the past 24 hours have reached $200 million.
relevant: Classic ‘Rektember?’ 5 Things to Know About Bitcoin This Week
Liquidate Cryptocurrency (Screenshot) Source: Coinglass
Trading firm QCP Capital hinted in a recent announcement to subscribers of its Telegram channel that more trading could take place due to increased volatility.
“QCP’s Volatility Momentum Indicator (VMI) has been active on both BTC and ETH this morning, indicating that the markets are entering a period of heightened volatility,” he confirmed, adding that the signal is nonetheless “directionally agnostic.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.