- Critical Support Holds Strong: Bitcoin’s critical weekly support at $58,000 remains solid as it re-enters the $60,000 zone. Despite recent volatility, this level continues to hold firm through multiple tests.
- Powell the Disruptor: Jerome Powell is set to address the market on Friday, with potential impacts expected. A 0.25% rate cut in September has a 75% probability according to CME Group, and traders are preparing for possible market shifts.
- TOTAL Market Cap Steady Above $2 Trillion: The crypto market cap remains above $2 trillion, despite ongoing market noise. Rumors of a potential lifting of China’s crypto ban are adding to the uncertainty.
Zooming out, Bitcoin’s chart reveals a resilient asset. Over the past few weeks, it has swung 20% only to return to the $58,000 level. While some see this as a testament to Bitcoin’s strength, others are wary of the fragility of the cryptocurrency market. Global factors, like the Japan interest rate hike, had significant impacts, with Bitcoin dropping 15% with 24hrs two weeks ago.
The Roller Coaster of Emotions: Relief, Frustration, and Anticipation
Traders are experiencing a whirlwind of emotions. Some are relieved they avoided the drop from $72,000, while others are anxiously awaiting the next big move. The bears, on the other hand, are hoping for a crash to fill their bags. Each group is following its own strategy, but with Bitcoin’s continued range-bound movement, a significant move seems imminent. A dip to $50,000 isn’t out of the question, but as long as $58,000 holds, shorting at this level for me remains risky and isn’t within my trade plan.
Liquidity Zones: The Market’s Squeeze Points
The market loves a squeeze, and there are billions of dollars in leveraged positions both above and below Bitcoin’s current price. According to Coinglass, dense liquidation zones exist around $70,000. As a trader, monitoring these levels on various timeframes is crucial for both short-term and long-term strategies.
My Insight: Traders often monitor these levels to predict where potential market squeezes might occur.
Powell’s Speech on Friday: Prepare for Volatility!
Jerome Powell’s speeches are notorious for causing market turbulence. His upcoming address is expected to focus on interest rates, with the official announcement scheduled for September 17-18. The anticipation of a rate drop could fuel global market activity, making this a critical event to watch closely.
Get Ready for Another Wild Week!
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At the time of writing this article, Bitcoin was trading at $60,480.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author takes no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.
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