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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
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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.
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.