Bitcoin price analysis 25 September: BTC maintaining support for another breakout
Bitcoin is at a pivotal position, fluctuating wildly after a market-wide bull run skidded to a halt last weekend.
- Bitcoin is slightly down in early trading but is holding above the crucial support level of US$6,600.
- Trading volumes remain relatively stable.
- Technical studies suggest that if bitcoin closes below US$6,600 it risks losing its bullish propensity.
The price of bitcoin, the world's leading cryptocurrency, is holding steady above US$6,600 this morning, despite losing around 1% of its value in the last 24 hours of trading. Additionally, most tokens are in the red.
Coming off the back of a stellar week, which saw many digital currencies increase their value, bitcoin has been fluctuating wildly. The token was priced at US$6,660 at midnight before falling to a weekly low of US$6,587 during the early hours of the am. The coin then rocketed back up to US$6,630 and has been see-sawing near this price point ever since.
At the time of writing, bitcoin was worth US$6,620.88.
24-hour trading volumes have reduced marginally from US$4.19 billion yesterday to US$4.16 billion today.
Coindesk reports that a break below the US$6,600 support level will make it very difficult for bullish traders to force a major upside breakout above the crucial resistance at US$6,970.
"The odds of BTC rising to the pennant resistance of $6,970 in the near-term are high," Coindesk analyst Omkar Godbole said. The coin's latest rally was cut short at a 17-day high of US$6,841 early into last weekend.
A new study by Chainalysis reveals that bitcoin investors and speculators have held their positions over the summer. What's most interesting is that, as of 31 August, around 4.8 million bitcoin (23% of total supply) were classed as speculative coins, meaning they held more liquidity. Comparatively, 6.4 million bitcoin (30% of total supply) were being held as investment coins, equivalent to a less liquid position.
Between December 2017 and April 2018, new speculators flooded the cryptocurrency marketplace, while long-term investors liquidated at higher margins. From April through August 2018, trading stability has returned.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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