- Bitcoin begins to recover from its lowest level in three months amid investor skepticism.
- Material Indicators, an on-chain monitoring source, suggests a potential support test for BTC price as large-volume investors clear liquidity.
- Analysts believe that a break in BTC dominance and the preservation of the $24,800 level could trigger the next wave of increase.
Bitcoin shows signs of recovery after hitting a three-month low, with potential support tests and market dominance shifts indicating a possible upswing in the near future.
Bitcoin’s Road to Recovery
Following a period of investor doubt regarding Bitcoin’s price behavior, the cryptocurrency began to rebound from its three-month low on September 12. This swift recovery in the BTC/USD pair occurred after a sudden price drop, particularly noticeable after a period of weakness during the Wall Street opening. Despite falling below $25,000, Bitcoin quickly rose above $26,000 in a short period.
Decline in Bitcoin Short Positions
Data from TradingView tracked a rapid return to levels seen after the weekly close in the BTC/USD pair. Bitcoin experienced a brief dip below $25,000 during the Wall Street opening, marking its worst performance since mid-June. However, a subsequent rebound pushed the leading cryptocurrency up by $1,000, with Bitcoin’s price moving above the $26,000 level at the time of writing. Prior to this movement, Material Indicators had warned that the BTC price might face a support test due to the removal of bid liquidity further down the BTC order book.
Market Impact and Future Predictions
Material Indicators and other data pointed out that previous support rug-pull operations resulted in large-volume investors clearing liquidity around the spot price, ultimately driving the Bitcoin market upwards. Following this, co-founder Keith Alan predicted that $24,750 would remain as support in a downward movement, a prediction that still holds validity. Among those calling for the bulls to overcome the $26,000 resistance following what popular investor Skew termed a “textbook short squeeze” was Skew himself.
Conclusion
Optimistic as always, popular investor Credible Crypto saw a break in Bitcoin market value dominance as a potential precursor to the next bullish BTC price movement. In a new analysis conducted on September 12, he pointed out that a downtrend that last occurred in mid-June and resulted in gains of over $7,000 within two weeks was being tested. He believes that the preservation of the $24,800 level and a break in BTC dominance, coupled with the intact bullish market structure in BTC, make a strong argument for the next impulse being just around the corner.
