Connect with us
Active Currencies 14728
Market Cap $2,609,547,539,640.24
Bitcoin Share 51.42%
24h Market Cap Change $1.84

BTC falls to $26k over the weekend but the bulls could drive a recovery

2min Read

The price action and momentum of Bitcoin in the short-term were bearish but there was a good chance that the dip was a liquidity hunt before a bullish reversal

Bitcoin slumps to $26k , but here's why it could be a bear trap

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • Bitcoin has a bearish outlook in the near term from the technical indicators
  • A weekend dip followed by a Monday recovery was also on the cards, especially after the defense of $24.8k

Bitcoin [BTC] witnessed a bounce from the $24.8k support level on 12 September, but its bullish momentum weakened last week. Over the weekend the price dipped 2% to test the $26k mark, but it could be just a short-term liquidity hunt before another move higher.

Read Bitcoin’s [BTC] Price Prediction 2023-24

A recent report showed that BTC inflows saw a spike and noted that the sell-off could continue. Long-term holders remained strong and saw their numbers increase over larger time horizons.

Will the Bitcoin bulls see another wave of selling?

Bitcoin slumps to $26k , but here's why it could be a bear trap

Source: BTC/USDT on TradingView

A weekend of tepid price action followed by a stop-loss hunt late on Sunday (24 September) and a recovery on Monday (25 September) is a script that has been around for a long time. The same thing could be occurring once more.

Even though the Relative Strength Index (RSI) and the market structure showed bearish strength, a reversal had a good chance to occur. In such a scenario Bitcoin could climb to $28.2k before facing significant resistance.

After the losses of 11 September, Bitcoin dropped to the $24.8k mark, the low of a bullish order block from the 1-day timeframe. This OB has been important since June, and the past ten days saw BTC bounce from this area.

Therefore, the defense of this demand zone was a positive development. The move to $26k likely caught many early bulls offside and also encouraged sellers to go short. Coinglass liquidation data showed $41.45m worth of liquidations in the past 24 hours, with $32m of them being longs.

The decline in spot CVD was a worrisome trend

Bitcoin slumps to $26k , but here's why it could be a bear trap

Source: Coinalyze

The Open Interest (OI) chart saw a decline when Bitcoin dipped to $26k. Subsequently, the OI bounced alongside prices and showed short-term bullish sentiment. Yet, it was unclear if the buyers could sustain the rally. The spot Cumulative Volume Delta (CVD) has been in a steady downtrend since 20 September and showed a lack of capital influx in the spot markets.

Is your portfolio green? Check the Bitcoin Profit Calculator

Hence, even though a rally from $26k made sense from a price action perspective, the exchange inflows and the lack of reaction from buyers in the spot market could spell trouble for the BTC bulls.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.