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Bitcoin (BTC) gained 20% in value over the weekend of September 10. The queen of cryptos thus begins the week on a good footing. Despite this, its price remains in the range formed since mid-June.
Bitcoin (BTC) jumped 20%
BTC has been in the green since September 07. And during the weekend of the 10th, it jumped 20%. This cryptocurrency thus begins this week on a rise. Indeed, it seems that the bulls have taken over since September. This may be due to investors returning after the summer holidays. The market for cryptos thus becomes more liquid.
More liquid because sellers are starting to liquidate their positions, and buyers want to jump in on the opportunity by buying the DIP. And this has led to the rise in value of Bitcoin (BTC) which currently stands at $417 billion in capitalization.
BTC: In the middle of a range
Despite a 20% jump, the first crypto nevertheless remains in a range. Indeed, bitcoin (BTC) has been moving inside the channel between $25,000 and $19,000 since July 2022. And even if its price made a rather impressive bull run during the weekend, it nevertheless remains in this channel (range). If we take a good look at the BTC/USD chart, bitcoin is currently at 50% of this range. You can see this by using the “Fibonacci retracement” tool.
For followers of the naked chart strategy, this is a ” Key level since there are many accumulated orders in this area. Note that at the same level of 50% of the Fibonacci tool, there is also a long red candle. It is a ” imbalance where the bears largely took over. It may then be that bitcoin (BTC) is rejected on this zone, and plunges again.
But there is also a second scenario where the price breaks this zone. It then comes out of the range with a very large volume. With this, the price is ready for a bull run. It is then possible tobuy bitcoin at this moment. Not to mention the arrival of large wallets on the market. The latter, who are returning from vacation, are indeed beginning to bring liquidity to the market. What can be verified with the appearance of a large transaction volume.
Nevertheless, it seems that the first scenario is the most probable for Bitcoin (BTC). Indeed, the increase during the weekend lacks volume. But not that, the price is also approaching “ the balance which will likely lead to another Bitcoin drop.
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