Bitcoin (BTC) held below $26,000 at the weekly close on Sept. 3as the analysis dismissed the extremely bearish sentiment from traders.
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BTC price weekly close puts $25,900 in the spotlight
The data from Cointelegraph Markets Pro yTradingView showed that the BTC price avoided volatility over the weekend, trading in a tight $200 range.
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An absence of direction provided a strong sense of déjà vu for market participants, with a similar behavior seen towards the monthly close of August.
With all traces of last week’s two volatility events — involving crypto asset manager Grayscale and US regulators — wiped off the charts, some traders weighed the impact of various potential weekly closing levels.
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“In terms of market structure, yet to see a candle body closing below the June HL or $25,900“, wrotepopular trader Skew in part of an X (formerly Twitter) thread.
Skew referenced a higher low (HL) below $25,000, with $25,900 being a key limit to rally this week..
“This is important because if the 1-week close is below and price trades this area as resistance early next week, it would imply a move lower towards the previous 1-week resistance, approx. $24,300“, he added.
Looking ahead, a “bearish scenario” could bring sub-$20,000 levels back into play. A bullish resurgence, implying a rally to $26,000 and a continuation of a higher low in the fourth quarter, was “less likely,” Skew predicted.
The bearish threat or “bearadise” of the bitcoin price persists
Summing up the events of the past week, Keith Alan, co-founder of monitoring resource Material Indicators, cautioned against categorical pronouncements about how bullish or bearish bitcoin really is.
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The rising and falling volatility, respectively, had come from Grayscale’s legal victory over the Securities and Exchange Commission (SEC).for its acronym in English), followed by the latter delaying a decision on the first US spot bitcoin ETFs.
However, Alan claims that the structure of the bitcoin market has not undergone any fundamental reforms.
On the first day of the September monthly candle, volatility continues, as traders who seem to have forgotten that “the trend is your friend” cling to hope and fight for nonsensical narratives that fit their bias.”wrote in part of apublicationX on September 2.
“The reality is that NOTHING HAS CHANGED, because no breakout to the upside or downside has been technically confirmed or invalidated.”
Repeating an existing theory, Alan went on to say that $24,750 was the support zone to watch, with bitcoin “bearadise” (or bitcoin bear threat) at risk of entering if it fails.
An accompanying graph showed the order book for BTC/USD on Binance, with buying liquidity increasing immediately below the spot price at the $24,750 zone of interest.
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