August didn’t end well for cryptocurrencies, and Bitcoin had a rough start to September. So, what are the current expectations? After a period of 10 days of sideways movement, increased volatility didn’t last long. BTC is now drawing a straight line on the chart. Expectations for September and the current BTC chart analysis can give us some ideas.
Bitcoin tried to break out of its range in the first half of last week, but the bulls couldn’t maintain higher levels. The price, once again, returned to its narrow range and is hovering around $26,000. The price movements in the past few days have formed two consecutive Doji candlestick formations on the weekly chart, indicating uncertainty about the direction of the next move.
Although it is difficult to predict the direction of the breakout, the expectation that the U.S. Securities and Exchange Commission may approve one or more pending applications for a spot Bitcoin exchange-traded fund (ETF) in the near future could limit downward movement. Former SEC chairman Jay Clayton seemed confident when he recently said that “approval is inevitable.”
In the short term, it is not easy to identify a specific catalyst that can take Bitcoin out of its range. The lack of clarity about the next trend movement of Bitcoin has put pressure on most major altcoins. Assets, except for a handful of altcoins, are losing significant support levels. Some even revisited all-time lows and reached deeper lows.
As long as Bitcoin remains within the range of $24,800 to $26,833, uncertainty will continue. However, the continued buying of dips by bulls, as seen in the long tail of the candlestick on September 1st, is promising. Although the declining moving averages indicate an advantage for bears, the gradually improving Relative Strength Index (RSI) suggests that the downward momentum may be weakening. The first signal for a reversal will be closing above $26,833.
If bears want to take control, they need to push the price below $24,800 and hold it there. This will be challenging as bulls are likely to defend the level with all their might. However, if bears succeed, BTC could drop to $20,000 by breaking the weak support at $24,000.