Since the second half of August, bitcoin has been trading in a sideways range. Meanwhile, the cryptocurrency has already demonstrated a false breakout of the flat several times. Thus, there was a removal of traders' stops, which usually means preparation for a sharp move. Bitcoin is now influenced by many different factors, starting from the dynamics of national central banks' interest rates and ending with the influence of the regulatory body SEC.
Yesterday, the ECB raised rates by 0.25%. Bitcoin ignored this decision and continued its uptrend. Quite possibly, traders are waiting for the Fed meeting next week. Also, the cryptocurrency was not affected by the higher-than-expected inflation in the United States.
The last important news was the court decision on FTX Trading.
The company won court approval to begin selling digital currency from its hoard of $3.4 billion worth of cryptoassets. The money will be raised for creditors who claim FTX owes them tens of billions of dollars.
The company can sell up to $100 million in cryptocurrency a week, depending on market prices. FTX holds nearly $1.2 billion in SOL, the native token of the Solana network, as well as $560 million in bitcoins and $192 million in Ether. The other coins have a smaller share.
The easiest thing to do without damaging the market would be to sell bitcoin, as it has much higher liquidity and there are many buyers for it. But other crypto assets may face difficulties and altcoin could plunge. We can already see traders moving into bitcoin, while other coins are standing still or declining. This trend may continue in the near future, which will have a positive impact on its price.
According to the technical analysis, the bitcoin price has recently updated its local minimum. Speculators' stops were removed, which means that an upward movement is now possible. Quotes have been showing increasing dynamics for several days. Now there is a consolidation above the level of the sideways range, as well as above the Fibonacci level of 0.236 from the entire wave of decline. The next growth target will be the level of 0.382. It’s also the level of a previous price surge, which removed speculators' stops, too. The target price will be at the level of $27,500. A stop-loss should be placed at the decline under 0.236 and when the price returns to the sideways range, which corresponds to the level of $26,000.
Bitcoin price growth:
Take profit — 27,500
Stop-loss — 26,000
This content is for informational purposes only and is not intended to be investing advice.
