Bitcoin price dips below $25K — Opportunity, or a sign of incoming calamity?
Bitcoin stands at the edge of a bearish breakdown, with a small possibility that the $25,000 support level could hold.
On Sept. 11, Bitcoin (BTC) broke from its parallel range between $25,500 and $26,500, falling to an intraday low at $24,950. A daily close below $24,750 threatens a drop to the sub-$20,000 range, but there's a slight chance that the bullish momentum could revive.
According to pseudonymous trader Horse, Bitcoin at $25,000 presents a short-term buying opportunity as it's the “best area to trap sellers” and “arguably the best place for long contextual” risk to reward ratio.
I feel like the chances that the market smokes this level after the first major test is slim.
Seems like the best area to trap sellers, and arguably the best place for long contextual R:R
I'll catch a falling knife. pic.twitter.com/eFNMzBCPJW
The price action in global markets and on-chain indicators tapping historical lows could give buyers hope that a positive trend could thrive.
Bitcoin tends to maintain a negative correlation with the U.S. dollar and a positive correlation with stocks.
On Sept. 11, when the S&P 500 and Nasdaq stock market indices were trading higher, the US dollar index was falling.
The dollar index (DXY) against other global reserve currencies is tapping its long-term range high levels around 104.8 points, hinting at the possibility of a negative price reversal. A bearish dollar could add tailwinds to Bitcoin’s price.
The U.S. Consumer Price Inflation (CPI) print on Sept. 13 will likely provide a decisive direction to the global markets.
According to the latest report by on-chain analytics outlet Glassnode, the Bitcon’s price drop over the last few weeks has caused several metrics to tap historical lows.
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