BTC price is tapping a new lifeline this week following a dip that tested $25,000 support on Monday. Despite the market being in a dilapidated state due to the lack of liquidity, this swipe at the major support challenged investors\u2019 \u201cwait-and-see\u201d stance, with some seeking fresh exposure to the largest crypto, foreseeing gains of at least to $28,000.<\/p>\n
Will BTC Price Uphold Gains To $28k?<\/h2>\n
Bitcoin\u2019s price<\/a>\u00a0sharp bounce from weekly lows around $25,000 not only gained ground above $26,000 but tested the short-term resistance at $26,400 for the second time in September.<\/p>\n <\/p>\n The uptrend would have continued uninterrupted if it were not for the short-term overbought conditions and resistance posed by the descending trendline. The Stochastic oscillator reveals that BTC price had to retreat to collect momentum while allowing relatively sidelined investors to buy.<\/p>\n Up a mere 0.2% to\u00a0$25,871, Bitcoin is seeking support<\/a>\u00a0provided by the 50-day Exponential Moving Average (EMA) (red) at $25,844. Keeping this support intact would play a huge role when bulls are mulling the resumption of the uptrend.<\/p>\n There\u2019s a higher probability that the expected gains to $28,000 will be sustained this time, especially with a buy signal coming from the Moving Average Convergence Divergence (MACD) indicator.<\/p>\n <\/p>\n Traders can consider holding onto their long positions as long as the blue MACD line is sitting above the red signal line. This signifies a strong momentum propping Bitcoin for more gains.<\/p>\n A successful break and hold above the descending is another milestone to look forward to, indicating that the downtrend is over and BTC is easing into a stronger uptrend.<\/p>\n Meanwhile, not all analysts are convinced that the downtrend in BTC price is over. Rekt Capital believes Bitcoin completed a double-top pattern earlier this week with the drop to $25,000. This also implies that there is room for another sweep at lower levels, plausibly at $22,000 ahead of the bull market.<\/p>\n However, the analyst and trader cautions that it is \u201cWorth noting but still very early stages & lots can still change in the meantime.\u201d<\/p>\n If #BTC<\/a> drops to ~$26000 by mid-September then a Double Top may be forming<\/p>\n A breakdown from ~$26000 would validate the DT<\/p>\n And a Measured Move for the DT would be ~$22000<\/p>\n Worth noting but still very early stages & lots can still change in the meantime$BTC<\/a> #Crypto<\/a> #Bitcoin<\/a> pic.twitter.com\/I4npIDq44f<\/a><\/p>\n \u2014 Rekt Capital (@rektcapital) August 7, 2023<\/a><\/p>\n<\/blockquote>\n <\/p>\n Liquidity in the crypto market has been a major problem since the implosion of FTX and continues to dry up across the board. According to on-chain analytics platform Glassnode, volumes have thinned to historical lows both on-chain and off-chain.<\/p>\n \u201cWhilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant unrealized loss.\u201d<\/p>\n Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows. <\/p>\n Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant\u2026 pic.twitter.com\/twInh0OqKf<\/a><\/p>\n \u2014 glassnode (@glassnode) September 11, 2023<\/a><\/p>\n<\/blockquote>\n The liquidity crunch is likely to be stemming from several factors, including concerns about the regulatory environment, especially in the US. Traders and investors are comfortable with a \u201cwait-and-see\u201d approach, hence the low trading activity.<\/p>\n \u201cSome investors might be hesitant to move their assets due to the prevalence of volatile price swings, especially in the cryptocurrency market.\u201d @AzukaDM, a web3 strategist said via X (Twitter). \u201cThis reluctance to trade can result in lower liquidity.\u201d<\/p>\n Another factor resulting in low liquidity levels could be the growing popularity of DeFi and staking platforms which remove a significant amount of digital assets from the circulating supply.<\/p>\n That said,\u00a0BTC price needs enough momentum<\/a>\u00a0to sustain gains above $26,000 with a break above $28,000 likely to propel the crypto beyond $30,000. On the downside, losing the 425,000 support could trigger another sell-off to $22,000.<\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n![\"BTC](\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/09\/BTCUSD_2023-09-13_08-11-54.png\")
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Shrinking Liquidity Still A Challenge<\/h2>\n
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