Bitcoin recorded a drop of around -3% this Monday, September 11. Let’s see together the future prospects for the price of $BTC.
Status of Bitcoin (BTC)
At the start of the week, the price of Bitcoin has deviated from its price range, roughly between $25.5K and $26K. Currently, Bitcoin is trading slightly above $25K.
This level has already demonstrated its relevance in the past. We can observe that BTC now forms a double top, a chart pattern which suggests a possible future decline.
Bitcoin price officially forms a “death cross”. This suggests that the upward trend in borrowing bitcoin since the start of the year may be reversing. The daily RSI indicates persistent selling pressure.
However, It should be noted that the price of bitcoin forms a bullish divergencewhich can be comforting for buyers.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
Recent fluctuations in Bitcoin have caused liquidations of long positions.
However, it is interesting to note that Bitcoin’s open interest has not been impacted, on the contrary. The latter has been revised upwards.
Therefore, this indicates that new positions have been opened, suggesting persistent enthusiasm for the price of bitcoin at this level.
It is interesting to highlight the BTC liquidity map.
The “liquidity map” or liquidity map in French, is a trading tool allowing you to identify the price levels where market liquidity is the strongest. Thus, it indicates areas where many buy and sell orders are concentrated. This visualization helps traders spot market turning points that can influence price movements.
We can see that BTC is getting dangerously close to its key levels. For this reason, it could trigger a large number of stop orders or forced liquidation. This scenario can naturally increase the volatility of bitcoin in one direction or another.
Hypotheses for the price of Bitcoin (BTC)
- If the price of Bitcoin rebounds to return above $26K, we could anticipate a bullish continuation up to the $27-28K level. The next resistance to take into account at this stage will be the psychological threshold of $30K.
- If the price of Bitcoin fails to rebound above $25K, we could consider a return to the $23-22K level. At this point, the next support would be around $19-20K.
Conclusion
Overall, we can see that the momentum that bitcoin gained at the start of 2023 is waning. The $25K support already seems to show its relevance. However, nothing confirms that the latter will resist the selling pressure, especially since key levels could pull the price of BTC downward. Thus, we must hope for a real return from buyers so as not to witness a bearish reversal. For a clear vision, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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