Bitcoin and other crypto tokens were struggling on Wednesday as the hints of higher rates for a prolonged period dented the market sentiments. The rise in US Treasury yields also pushed the riskier asset class lower. The global macroeconomic cues will guide the markets going ahead.
Bitcoin (BTC) is consolidating just below its key moving averages after failing to decisively breach them earlier this month. Its RSI is in neutral territory (46) with a 5-year low in volume of trade on exchanges – indicating a wait and watch approach by long-term investors. This comes in spite of a $147 million BTC buy by MicroStrategy.
Image: Chart-BTC
The asset needs to take out the $28,200 level that sits around its 100-day MA to maintain a bullish bias leading into Q4 this year.
Key psychological support zone at $25,000 has been held successfully in the recent past while a drop further down to $23,500 can’t be ruled out if volumes weaken further. That said, Bitcoin is up ~1% this month, and will mark the first time in 7 years that September isn’t red for the asset if it stays so this week.
Major Levels:
Support: $26,000, $25,100, $24,500
Resistance: $26,500, $27,500, $28,200(Views and recommendations given in this section are the analysts’ own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
