Bitcoin (BTC) remained below $26,000 at the close of September 3rd week, despite bearish sentiment from traders.
BTC price weekly close puts $25,900 in focus
Data from Cointelegraph Markets Pro and TradingView showed that the BTC price experienced minimal volatility over the weekend, trading within a narrow $200 range.
This lack of direction was reminiscent of the behavior observed during the August monthly close.
With recent volatility events involving Grayscale and US regulators no longer affecting the charts, traders are now considering various potential levels for the weekly close.
“In terms of market structure, we have yet to see a candle body close below the June higher low (HL) at $25.9K,” popular trader Skew wrote on Twitter.
Skew pointed out that reclaiming the key line at $25,900 is crucial. If the weekly close is below this level and the price is met with resistance early in the following week, it could indicate a move lower towards the previous weekly resistance of around $24.3K.
Looking ahead, Skew predicted that a “bearish scenario” could result in Bitcoin dropping below $20,000, while a bullish revival with a reclaim of $26,000 and a higher low in Q4 is considered less likely.
Bitcoin “bearadise” threat remains
In a recap of last week’s events, Keith Alan, co-founder of monitoring resource Material Indicators, emphasized the importance of not making definitive statements about Bitcoin’s bullish or bearish nature.
Volatility in both directions stemmed from Grayscale’s legal victory over the Securities and Exchange Commission (SEC), followed by the SEC’s decision to delay a ruling on the first US Bitcoin spot price exchange-traded funds (ETFs).
However, Alan argued that Bitcoin’s market structure has not undergone any significant changes.
“On the first day of the September monthly candle, volatility continues as traders who seem to have forgotten ‘the trend is your friend’ are clinging on to hope and arguing over biased narratives,” he wrote.
“The reality is NOTHING HAS CHANGED, because neither a breakout nor a breakdown has been technically confirmed or invalidated.”
Alan reiterated the theory that the $24,750 support zone is crucial, and failure to hold this level could trigger a “bearadise” scenario for Bitcoin.
An accompanying chart displayed the BTC/USD order book on Binance, revealing increased buying liquidity just below the spot price at the $24,750 zone of interest.
This article does not provide investment advice or recommendations. Investing and trading involve risks, so readers should conduct their own research before making a decision.
Photo Credit: Shutterstock/K.unshu
