Bitcoin has experienced a notable surge, aligning with gold’s recent rise, as both assets see significant price movements. At the Wall Street opening on Tuesday, Bitcoin (BTC) soared towards the new September highs, reaching $111,775 on Bitstamp, which marks an increase of nearly 2% for the day. This upward trend coincides with gold’s new all-time highs, surpassing $3,500 per ounce, following positive developments sparked by recent U.S. macroeconomic data.
As Bitcoin’s price climbed, it actively punished bearish positions, with data indicating approximately $60 million in liquidations of crypto shorts over a four-hour period. Market commentators remain cautiously optimistic, emphasizing the necessity for Bitcoin’s price action to maintain momentum to avoid a bearish reversal.
Keith Alan, co-founder of Material Indicators, highlighted the significance of the 21-day simple moving average (SMA), suggesting that Bitcoin bulls must conquer strong technical resistance levels to prevent a potential “Death Cross” between the 21-day and 100-day moving averages. Analysts are eyeing this critical threshold closely as a determinant of future price stability.
Crypto expert Marcus Corvinus described the current scenario for Bitcoin as a “critical moment,” pointing out that while the asset has been on an uptrend, it now finds itself at a pivotal juncture within a trend channel. Corvinus warned that a downturn here could signal the termination of the uptrend and initiate a new downtrend.
On the contrary, popular trader Roman expressed skepticism about the likelihood of an imminent reversal, noting that Bitcoin has lost support at the $112,000 level and is now expected to confront the $100,000 mark. He indicated that should Bitcoin dip below $100,000, it would signify the end of the current bullish sentiment.
The month of September carries historical significance for Bitcoin, as it traditionally experiences a downturn during the third week. Timothy Peterson, a network economist, brought attention to this trend, stating that Bitcoin has shown an average decline of 3.5% in September since 2013. He clearly articulated that between the 16th and the 23rd of September, Bitcoin has recorded a decline “100% of the time” with typical losses around 5%. This historical performance paints a cautious outlook for Bitcoin investors as they navigate the current market landscape.
In conclusion, while Bitcoin is witnessing a temporary rise alongside gold, the outlook remains uncertain. Traders are advised to remain vigilant as seasonal trends and technical indicators may signal further challenges ahead.
