Bitcoin (BTC) faced a downturn as Wall Street opened on September 25th, with upward resistance strengthening.
BTC/USD 1-hour chart. Source: TradingView
BTC Price “Plummets” May Face October Settlement
According to data from Cointelegraph Markets Pro and TradingView, after BTC/USD hit a one-month high of $64,795 on Bitstamp, the price recovered to below $64,000.
Despite recording higher lows and highs on an hourly basis, BTC price action wasn’t enough to convince traders that a major breakout was coming.
Popular trader Skew analyzed the market structure and highlighted that there is no sign of a breakdown of $65,000, which has been the area with the most sell-side liquidity in recent days.
“Price is still struggling to find momentum near $65,000 and Monday’s high. There is a lot of passive selling, especially near $65,000, which confirms the market view that price is real resistance and supply,” he wrote in part of his latest post on X.
“The added compounding liquidity at $65,000 means that there should be a lot of buying from buyers and passive buyers, which should push the auction up to a higher price.”
Skew noted that on the downside, bid liquidity remained between $60,000 and $62,000.
Data from monitoring resource CoinGlass highlighted the size of a $65,000 “sell liquidity wall” across exchanges that day.
BTC Liquidation Heatmap (screenshot). Source: CoinGlass
“There is a significant amount of sell orders on Binance’s spot pairs, some of which were filled early at the local highs,” continued fellow trader Daan Crypto Trades.
“This coincides with the big $65K level signaling a market structural breakdown.”
When considering when a significant breakout will occur in the overall sideways price performance, Trader Gel is looking to 2023 as a guide.
“Last summer, Bitcoin surged for 219 days before finally hitting a new high on October 23,” he told his X followers along with a comparison chart.
“So far, this ebb has lasted ±210 days, and October is just beginning. Could a new high be coming soon?”
BTC/USD 3-day chart. Source: Jelle/X
Analysis: Bitcoin Will “Alienate Many People”
Meanwhile, the outlook remained optimistic for those seeking support for cryptocurrencies and risk assets from new macroeconomic trends.
relevant: RSI hints at a classic BTC price breakout: 5 things to know about Bitcoin this week
The outlook for Bitcoin has become noticeably bullish through the end of the year, driven by liquidity inflows from central bank easing.
“While there is currently a lack of unique crypto price drivers, the stars are aligning in the macro environment, which could push crypto prices higher,” trading firm QCP Capital summarized in a recent post to subscribers to its Telegram channel.
“We know how explosive cryptocurrency prices can be, and there are many bullish catalysts, so I think the next move up will surprise and alienate many.”
On September 26, the U.S. will release more macroeconomic data, including jobless claims and second-quarter GDP, followed the following day by the release of the personal consumption expenditures (PCE) index, known as the Federal Reserve’s “preferred” inflation measure.
U.S. Federal Reserve Chairman Jerome Powell was also scheduled to deliver a pre-recorded speech at the 2024 U.S. Treasury Markets Conference at the Federal Reserve Bank of New York.
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.