is at risk of remaining below $26,000 until the weekly close on September 3rd.
- Low volatility in the market is causing concern among investors and the importance of closing levels is being debated.
- Analysts point out that $25,900 is a critical support level and a close below this level could signal a negative downturn.
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Bitcoin is facing the possibility of staying below the $26,000 mark until the weekly close on September 3rd, causing analysts to focus on the bearish sentiment among investors. The lack of volatility and the significance of technical levels are top concerns for market participants.
Crucial Resistance for Bitcoin Price
Data from TradingView showed that the BTC price avoided volatility over the weekend, moving within a narrow $200 range. This lack of volatility created a strong sense of déjà vu for market participants, as similar behavior was observed leading up to the August monthly close.
With all traces of last week’s two volatility events involving crypto asset manager Grayscale and US regulators wiped from the charts, investors debated the impact of various potential weekly closing levels. Popular investor Skew made the following comment in an X post:
“From a market structure perspective, I have not yet seen a candle close below the June close or below $25,900.”
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Skew referred to a lower level below $25,000 and pointed to $25,900 as the key line to avoid such a drop this week.
“This is important because if the weekly close is below and the price trades this area as resistance early next week, this will mean a drop towards the previous weekly resistance of $24,300.”
Looking ahead, a downside scenario could bring levels below $20,000 back into play. Skew predicted that a resurgence involving the recovery of $26,000 and the continuation of the lowest level of the 4th quarter is less likely.
Downside Threat Continues for Bitcoin
Meanwhile, Keith Alan, co-founder of crypto data analysis platform Material Indicators, who summarized last week’s events, warned about how bullish or bearish Bitcoin actually is. Upward and downward fluctuations respectively resulted from Grayscale’s legal victory against the Securities and Exchange Commission and then the SEC’s decision to postpone its decision on the first US Bitcoin spot price exchange-traded funds. However, according to Alan, the structure of the Bitcoin market has not undergone a fundamental revision.
“The truth is that nothing has changed because neither a breakout nor a crash has been technically confirmed or invalidated.”
Reiterating a current theory, Alan pointed out that $24,750 is the support area to watch and if it fails, the Bitcoin price carries the risk of falling. The attached chart shows the BTC/USD order book on Binance, with buying liquidity increasing just below the spot price in the $24,750 interest area.
Bitcoin’s price is currently at a critical juncture, with analysts and investors closely watching key support and resistance levels. The lack of volatility and the potential for a significant downturn if certain levels are not maintained are causing concern in the market. As the week progresses, these factors will continue to influence the price of Bitcoin and the overall sentiment in the cryptocurrency market.