Bitcoin has slipped into standby mode as the weekend unfolds, with price action remaining compressed inside a familiar range. Volatility is muted, momentum is lacking, and traders are largely focused on well-defined scalp levels rather than expecting a decisive move. With the holiday period approaching, patience and precision are taking center stage as the market waits for its next real catalyst.
Bitcoin Slips Back Into Weekend Range Mode
According to a recent update, analyst Lennaert Snyder noted that Bitcoin has once again entered a period of “weekend chop.” While he does not expect any major trending moves during this time, he has outlined several specific scalp scenarios and price traps he is monitoring closely to take advantage of short-term volatility.
If Bitcoin swipes the wick near $88,865 and tests the resistance box situated just above it, he will be hunting for scalp-short opportunities, specifically after failing to hold the level. Conversely, for those looking to go long, he is eyeing the $87,420 level, which marks the start of the previous impulse and a key support box. If the price tests this area, Snyder will be watching for clear reversal patterns to trigger a scalp-long.
However, if the market loses that “start impulse” support, the analyst believes a continuation short down to the $85,890 lows becomes highly probable. Once the price arrives at those deeper lows, he will pivot his strategy to wait for a reversal to long position.
Finally, Snyder identified a major breakout trigger: when Bitcoin can gain and hold $89,375 (the top of the resistance box), the analyst assumes the market will finally squeeze toward the $90,400 region. While he doesn’t expect this breakout to materialize before Monday, he has his alerts set and suggests traders take the time to enjoy their weekend.
Weekend Lull Keeps Bitcoin Range-Bound
In an X post, analyst Daan Crypto Trades observed that BTC is entering the weekend in a state of relative stagnation. The analyst suggested that this is an ideal window for traders to step back and rest, allowing for a mental reset before the market dynamics potentially shift in the coming week.
Despite various fluctuations, Bitcoin’s price has remained essentially unchanged over the past few weeks. The asset remains firmly stuck in the middle of its established range, lacking the necessary momentum to either break out toward new highs or break down into a deeper correction.
Daan Crypto Trades warned that next week will likely be characterized by more choppy price action, as market activity often thins out significantly around the Christmas holidays.
]]>Following a period of intense volatility and a significant price movement, Bitcoin’s market is now experiencing a predictable consolidation phase, characterized by what traders call intraday chop. This is not a sign of weakness but rather a natural and often necessary stage in any market cycle.
A Necessary Foundation For The Next Move
In an X post, a dedicated crypto enthusiast, Uniswap Gems, provided a clear-eyed view of Bitcoin’s current price action, stating that the market is in a predictable phase of intraday chop after a period of extreme volatility.
Uniswap Gems noted that the recent huge, volatile move caught many traders off guard. As a result, the market is now in a period of consolidation. This chop is a sideways price movement within a tight range, which is often needed to establish a solid bottom after a sharp price swing. He cautions that this phase could last for the next 2 to 3 days, making it a difficult environment for those looking for quick directional trades.
For a bullish trend to resume, BTC needs to flip $113,000 into a support level. If this happens, it could set the stage for a retest of the $115,000 range. However, if BTC fails to hold its current levels and makes new local lows, Uniswap Gems expects a more significant drop all the way down to sub $105,000, which would be a decisive move to the downside.
Analyst Philakone, a crypto investor and day trader, has issued a stark reminder about the inherent volatility of BTC and historical price action in bear markets. His analysis focuses on the severe drawdowns that have consistently followed previous all-time highs.
According to Philakone, BTC price has a historical tendency to drop between 75% to 85% from its peak during a bear market. This is a crucial point that he believes many people struggle to grasp, especially after a prolonged bull run. However, if BTC’s all-time high for the current cycle reaches $125,000, a 75% drop would bring the price down to a mere $30,000.
Market Still Fragile Despite Heavy Liquidations
Crypto trader known as KillaXBT has adopted a highly cautious stance on the BTC market. For the first time in a while, the expert is fading this BTC dip despite a massive liquidation event of 1.5 billion. His decision is based on a technical analysis of a key market indicator of the USDT dominance chart.
KillaXBT explains that the USDT.D (Tether Dominance) chart is showing concerning signals. If it breaks above its Equal Highs (EQHs), it could lead to a bigger drop in price. Due to this analysis, he has decided not to open any position in the market and is not looking for either long or short trades.
]]>Summers have historically been very bearish for the Bitcoin price, and the year 2024 has been no different. Since summer began in June, the price of Bitcoin has been very weak, with multiple flash crashes rocking the pioneer cryptocurrency at various points. So far, the Bitcoin price has gone from over $70,000 to below $50,000 at one point. However, this could all be coming to an end as a crypto analyst has pointed out similarities with the summer of 2023 that suggest a recovery is imminent.
When The Summer Chop Might End
Crypto analyst Crypto Jelle, comparing the number of days that previous summer chops have lasted, has come up with a likely timeline for when the Bitcoin price decline could come to an end. Mainly, he takes into account the performance of Bitcoin in the summer of 2023 and how many days it lasted before it officially came to an end.
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According to the post, the summer chop of 2023 actually lasted a total of 219 days, or approximately seven months. Given that trends like these tend to mirror each other, there is a chance that the current summer chop could last around the same time as that of 2023 did.
The analyst points out that the current summer chop has been going on for 190 days, or approximately six months. Going by the duration of summer 2023, it means there is still around one month left to go before the bearish phase is finally over.
This suggests that the month of September will continue to be choppy for the Bitcoin price. However, the good news is that it is likely the last month of downtrend before another rally begins. “If this chop-season lasts as long as the previous one, it will end around the start of October,” the crypto analyst stated.
Day 190 of chop-season today.
The previous summer chop lasted for 219 days, after which price more than doubled in the months that followed.
If this chop-season lasts as long as the previous one, it will end around the start of October.#Bitcoin pic.twitter.com/dXYMVCbmM9
— Jelle (@CryptoJelleNL) September 4, 2024
Bitcoin Open Interest Flush Good For Price
Another crypto analyst who has predicted a potential surge in the Bitcoin price is @CredibleCrypto on X (formerly Twitter). The analyst had previously predicted a drawdown for the cryptocurrency. By the middle of the week, the Bitcoin price had completed the drawdown, prompting the analyst to move to the next phase of the prediction.
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According to him, the drawdown below $57,000 could mean that the BTC price is now ready for a recovery. He explained that “Didn’t get that move up first unfortunately but we have now hit my downside target so hopefully this just means we are now ready for that relief rally sooner rather than later.”
The price crash also saw a massive wipe of open interest (OI) from the market, but the crypto analyst believes that this could be good, although buyers are yet to arrive. “Nice wipe on OI here but no immediate signs of buyers stepping in just yet,” Credible Crypto said. “Let’s see how things develop.”
Featured image created with Dall.E, chart from Tradingview.com
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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Ethereum is consolidating above $1,550 against the US Dollar. ETH could rally if there is a clear move above the $1,620 resistance zone.
- Ethereum is trading in a positive zone above the $1,520 and $1,500 support levels.
- The price is now trading above $1,550 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase if it stays above the $1,550 and $1,530 support levels.
Ethereum Price Eyes Fresh Increase
Ethereum made an attempt to gain strength above the $1,620 resistance and the 100 hourly simple moving average. However, ETH failed to remain stable above $1,620.
A high was formed near $1,648 and the price trimmed gains. There was a drop below the $1,580 level and $1,550. A low is formed near $1,535 and the price is now rising. There was a move above the $1,550 resistance. Ether price cleared the 23.6% Fib retracement level of the recent decline from the $1,648 swing high to $1,535 low.
It is now trading above $1,550 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $1,560 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $1,600 level. It is near the 50% Fib retracement level of the recent decline from the $1,648 swing high to $1,535 low. The next major resistance is now forming near the $1,620 level.
Source: ETHUSD on TradingView.com
A clear move above the $1,650 level might send the price towards $1,650 resistance. Any more gains may perhaps open the doors for a move towards the $1,700 resistance in the near term.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,600 resistance, it could start another decline. An initial support on the downside is near the $1,560 zone and the 100 hourly SMA.
The next major support is near $1,535, below which ether price might revisit $1,500. Any more losses may perhaps send the price towards the $1,420 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,535
Major Resistance Level – $1,600
Major coins traded lower Thursday evening as the global cryptocurrency market capitalization fell 2.37% to $2.21 trillion.
What Happened: The apex cryptocurrency, Bitcoin (CRYPTO: BTC), fell 2.89% to $47,811.50 over 24 hours. For the week, BTC has inched lower by 0.89%.
Ethereum (CRYPTO: ETH) traded 1.85% lower at $3,977.06 over 24 hours. Over a seven-day period, it has fallen 4.16%.
Meme cryptocurrency Dogecoin (CRYPTO: DOGE) was down 4.14% to $0.17 over 24 hours. It has risen 1.99% for the week.
DOGE-rival Shiba Inu declined 3.57% to $0.000033 over 24 hours. Over a seven-day trailing period, it has dropped 6.1%.
Yearn.finance, Celo, and Arweave were among the top gainers over 24 hours, according to CoinMarketCap data.
Yearn.finance shot up 17.3% to $24,388.51, Celo rose 9.69% to $3.85, while Arweave was up 8.95% to $45.73 in the period.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The hawkish stance taken by the U.S. Federal Reserve on Wednesday was reinforced by the Bank of England, which raised interest rates for the first time in three years on Thursday.
The United Kingdom’s central bank increased interest rates to 0.25% from 0.1% after the rise in inflation came in at the fastest pace in a decade, reported BBC.
Giles Coghlan, the chief analyst at U.K.-based multi-regulated Forex and CFD provider HYCM, said the move by the U.K. central bank caught the markets off guard.
“Today’s decision will have been a careful balancing act for the Monetary Policy Committee, who will have been weighing a surge in inflation against a surge of new coronavirus cases – and clearly, inflation won the day,” wrote Coghlan in an emailed note.
The relief rally, seen in Bitcoin and other major cryptocurrencies, changed course on Thursday. The reversal caught the eye of some analysts.
Amsterdam-based cryptocurrency trader Michaël van de Poppe said on Twitter the market was in a “chop” season which not only erodes gains but also the “ideas of people on the markets.”
Welcome to the chop season.
The season where all the gains of day 1 are lost on day 2 and everything flip/flops within 24 hours, also the ideas of people on the markets.
— Michaël van de Poppe (@CryptoMichNL) December 16, 2021
Cryptocurrency-oriented YouTube analyst Justin Bennett told his following on Twitter that Bitcoin “has a history of filling long lower wicks.” Bennett said he has no reason to believe it will be different this time around.
$BTC has a history of filling long lower wicks.
I have no reason to believe this time will be different.#Bitcoin pic.twitter.com/My4Wb39L5i
— Justin Bennett (@JustinBennettFX) December 16, 2021
Meanwhile, the number of whale addresses holding 100 to 1,000 BTC is on the rise. A rise in that metric is historically linked with an increase in BTC prices, noted on-chain analyst Santiment on Twitter.
#Bitcoin‘s number of whale addresses holding 100 to 1,000 $BTC has 193 more addresses in this prestigious club, compared to just 10 weeks ago. The number of whales in this tier has shown some strikingly impressive parallels to $BTC price, historically. https://t.co/kFzKHVqWxq pic.twitter.com/ogN0WIz7Ut
— Santiment (@santimentfeed) December 16, 2021
Cryptocurrency research firm Delphi Digital took note of the rising institutional demand for crypto assets on the trading platform of Coinbase Global Inc (NASDAQ:COIN).
Retail And Institutional Volume On Coinbase — Courtesy Delphi Digital
The first three quarters of 2021 saw 5.7x more institutional inflows to Coinbase than the entire 2020. Total volume was over $1.1 trillion in the first nine months of the year and 68% of that was generated by institutional demand. Retail volumes shrank by 7.5% in Q3.
The research firm said while long-tail assets such as Shiba Inu and Dogecoin have been “extremely popular” with Coinbase’s retail clientele and contributed 60% of Coinbase’s Q3 volume, they may become institutional sweethearts as well.
Read Next: Why Is Ethereum Rival Crypto Avalanche Shooting Higher Today?