Negative months often put market participants under unnecessary “stress”, as negativity is much harder to handle psychologically than positivity. Patience and a risk-adapted approach are therefore the key to success!
Thought of the week
Digital Asset News
BTC price looks at a traditionally “red” September.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC price was weak, hitting a low of $57,230 on Bitstamp – a level last seen on August 16.
In the middle of the weekend, less liquid conditions made for a dismal end to the month, and buyers were unable to prevent further losses later on.
Bitcoin ended August down 8.6%, below its average gain of 1.75%, according to data from monitoring platform CoinGlass. CoinGlass figures also show that September is historically a bad month for BTC/USD, with average losses totaling 4.5%.Local level taking a beating, wouldn’t be surprised if it gives way eventually,” wrote well-known trader Crypto Chase in part of an X post on short-term market activity.
“Bulls want to hold 55.5-56.5K or see a decisive PA above 61K~. Losing 55K probably means 51K~.“”From a trading perspective, I favor longs, so I’d prefer to see the move down first to hit the liquidations before new positivity could take hold.”
A popular Bitcoin indicator used by traders to gauge the selling activity of miners is approaching a level that signals a promising buying opportunity for Bitcoin, according to a crypto analyst.
“The Puell Multiple Index is fluctuating between these two critical levels. If historical patterns continue, a bearish scenario where the index falls below 0.6 could again signal a favorable buying opportunity for investors,” CryptoQuant contributor Grizzly explained in an analyst note on Aug. 31. Grizzly explained that the area between 0.6 and 0.8 on the Puell Multiple Index is known as the “decision zone.”
He pointed out that historical data from 2014 shows that a drop in the index below the 0.6 threshold is often an ideal opportunity for Bitcoin dollar-cost averaging (DCA) strategies.
Traders use the indicator as a measure of miner activity.
Traders typically use the Puell multiple to assess the state of miner revenue. For example, a high Puell multiple indicates low selling pressure, while a low Puell multiple may indicate high selling pressure.
Based on a key technical setup, Bitcoin is on track for a breakout to $87,000 by 2025, while BTC price is trapped below a key short-term resistance line.
Bitcoin is on its way to $87,000 by early 2025, according to the power law corridor, writes popular analyst Titan of Crypto in an Aug. 29 X-Post:
“Bitcoin $87,000 Blue Line Target. BTC appears to be consolidating and preparing to target the blue line of the power law corridor”. The power law corridor measures the correlation between the Bitcoin price and time, which is often used by long-term holders.
Other analysts also see a possible breakout:
“Bitcoin has been supported by a Gaussian channel since January 2023. After exiting the lower channel, a massive bull run will follow. “Despite the optimistic long-term forecasts, Bitcoin is currently trapped below a key resistance line.
Bitcoin needs to reclaim $59,600 to gain further upside momentum.
“If BTC recaptures $59,600 and breaks the cloud rotation, the clouds would turn from resistance to support. This could trigger an upward move.”
Digital Asset Market
Market report including trading idea
The majority of digital assets experienced a week that can be classified as clearly negative. The leading digital assets lost between 9-20% in value and were thus unable to preserve the slightly positive market sentiment triggered by Jerome Powell’s announcement of interest rate cuts. Institutional investors in the US caused outflows from Bitcoin spot ETFs, which supported this trend. If no institutional capital flows into the market, the current price levels cannot be maintained. Important support zones could not be confirmed, so that a negative trend channel now prevails, which turned into a slightly negative consolidation over the weekend. The market is currently lacking catalysts that would ensure a long-term upswing and at the same time spread general optimism. Digital asset trends usually thrive on a medium-term price outlook, which subsequently attracts capital.
If there are no significant capital inflows in the coming weeks, further setbacks could occur. However, the positive market outlook for the last quarter of the year should not be ignored.
On a weekly basis, Bitcoin is now down almost 9% and was unable to defend the support zone of $60,000 and is now at the lower end of the important support level of ~$57,500.
Chart technology
From a technical chart perspective, Bitcoin is now once again well below the $60,000 support zone and has thus experienced a strong setback within a few days. The zone between $56,000 and $58,000 is fundamentally important in order to defend the current price gains since the “Japanese stock market crash”. If the market slips significantly below this level, sell-offs to ~$50,000 cannot be ruled out. Here the momentum would turn and underpin the bearish pattern. However, these price levels also offer low-risk entry points at any time as soon as the market follows a secure trend and recaptures the $60,000 mark through positivity.
The next price targets in the event of a positive trend: ~$60,000, ~$62,500, ~$65,000
The next price targets in the event of a negative trend: ~$55,000, ~$52,650 ~$49,000
Trading idea
If there is a trend reversal, sold-off altcoins in particular are a very lucrative entry point!
Weekly overview
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