Bitcoin trades above $26,400 as analysts stress the need to remain above its 200-week MA
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(Kitco News) - It was a subdued end to the trading week for the crypto market with prices largely trading sideways as investors turn their sights towards next week’s Fed meeting, where the central bank is expected to hold interest rates at the current levels.
Stocks sold off to close the business week as the United Auto Workers launched a strike against the Big 3 automakers for the first time since 2019 amid a rise in high-profile labor actions across the U.S. At the closing bell, the S&P, Dow, and Nasdaq all finished lower, down 1.23%, 0.83%, and 1.61%, respectively.
Data provided by TradingView shows that Bitcoin’s (BTC) price slid lower throughout trading on Friday, declining from a high of $26,730 in the early morning to a low of $26,215 in the afternoon before bulls managed to push it back above $26,400.
BTC/USD Chart by TradingView
“September Bitcoin futures prices [were] near steady in early U.S. trading Friday,” according to Kitco senior technical analyst Jim Wyckoff, who noted that “Prices have seen a decent rebound after hitting a six-month low Monday.”
Bitcoin futures 1-day chart. Source: Kitco
“The BC bulls have stabilized prices but a downtrend remains in place on the daily bar chart,” Wyckoff said. “More good gains in the near term would negate the downtrend and also suggest a near-term market bottom is in place.”
According to MN Trading's founder Michaël van de Poppe, Bitcoin is currently trading just above its 200-week moving average, and if it is able to hold that level, “which most likely it will, we're going to be up-only from here,” he said.
BTC/USD 1-week chart. Source: Twitter
“Bitcoin's price has been seeing a test beneath the 200-week EMA in the previous week, which quickly recovered upwards and now, price has been testing the range high for a potential break,” he said. “This is comparable to the price action (also in the same period of time) with September 2015, where we saw that price started to rally upwards significantly in October and November.”
Poppe said that August and September are usually rough periods for the crypto market, and if the 2015 price action is repeating itself, the worst may now be behind us “as we’re passing the first half of September.”
“In that regard, from here, the chances are very significant that we'll be seeing ourselves into an upwards trending environment as Q4 is the best period for crypto to run upwards, historically,” he said.
While Poppe is hopeful that BTC can hold above its 200-week EMA, which would signal further gains from here, market analyst Crypto Tony posted the following chart warning about a “max-pain” scenario that could see the top crypto briefly dip back below $25,600.
$BTC / $USD - Max Pain Scenario— Crypto Tony (@CryptoTony__) September 15, 2023
This is a situation i think would blow up Crypto Twitter if we did get it. Weekends provide low liquidity, so big moves can certainly happen with ease pic.twitter.com/dp7RT28Hw2
Analyst CrediBULL Crypto agreed with this analysis. “Looks like we're not ready to take 27k just yet- local [invalidation] for immediate upside has been hit,” he said. “This opens up doors for high to mid-25k's. This is healthy. Depth depends on momentum, but anything above our low at 25k is nothing to be concerned about.”
Double-digit gainers in the altcoin market
The top 200 altcoins were evenly split between winners and losers, with multiple gainers recording double-digit increases while losses were minimal.
Daily cryptocurrency market performance. Source: Coin360
Hifi Finance (HIFI) had the best performance of the day with an increase of 48.3%, followed by a 28% gain for tomiNet (TOMI), a 21.5% increase for Worldcoin (WLD), and a 14.4% gain for Storj (STORJ). IOTA (MIOTA) suffered the largest loss, with a decline of 5.6%.
The overall cryptocurrency market cap now stands at $1.05 trillion, and Bitcoin’s dominance rate is 48.9%.