Watch These Bitcoin Price Levels Heading Into September
Bitcoin (BTC) slumped overnight and is well below its March all-time high as investors search for the next catalyst to drive the price higher heading into a month when the pioneer cryptocurrency tends to underperform.
The cryptocurrency has only generated a positive return three times in the month over the last decade, according to data from crypto analytics site Coinglass.
Bitcoin, which trades around 18% below its record set in early March, has struggled to gain traction in recent months as the January launch of spot Bitcoin exchange-traded funds (ETFs) and April’s halving event slip further into the rearview mirror.
Bitcoin was recently trading at around $60,000, after slipping below $59,000. The cryptocurrency traded at more than $73,000 in March.
Below, we’ll take a closer look at Bitcoin’s chart while turning to technical analysis to identify key price levels of interest.
Bitcoin’s price has traded within a descending channel since early July, with volumes on Coinbase (COIN) remaining mostly subdued throughout the pattern, indicating lackluster investment interest in the legacy cryptocurrency.
In another bearish development, the 50-day moving average crossed below the 200-day MA earlier this month to create a death cross, an appropriately named chart signal that cautions the start of a new downtrend. More recently, Bitcoin’s close on Tuesday below the 50-day MA will likely weigh on short-term momentum in the absence of a new bullish narrative.
Given the recent volatility in Bitcoin and other risk-on assets, investors should monitor these bull and bear case price levels in the world’s largest cryptocurrency.
An initial breakout above the descending channel’s upper trendline could see Bitcoin’s price move up
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