Bitcoin has been oscillating inside a large range between $25,000 and $31,050 for the past several months. In a well-defined range, traders generally buy at the support and sell close to the resistance and that is what was seen in Bitcoin. The price rebounded sharply off $25,000, indicating that the range remains intact and traders are buying near the support.

The drop to $25,000 happened on fears that a US court may permit liquidators to sell crypto assets of bankrupt exchange FTX and its sister concern Alameda Research. FTX holds about $3.4 billion in crypto assets with Solana being the biggest position worth $1.16 billion. It also holds $560 million in Bitcoin and $192 million in Ether. However, the markets remained calm after the court gave the said permission on September 13.

We said in the previous analysis that the bulls are expected to defend the $25,000 level with all their might and they did just that on September 13. This indicates that Bitcoin remains stuck inside the large range between $25,000 and $31,050. The bulls pushed the price above the 20-day exponential moving average (EMA) on September 14 but failed to challenge the 50-day simple moving average (SMA). This suggests a lack of demand at higher levels. The bears tried to sink the price back below the 20-day EMA but the bulls held their ground.

This shows that the bulls are trying to flip the 20-day EMA into support. If they do that, the BTC/USD pair could climb to the 50-day SMA. This level may again act as a strong hurdle but if cleared, the pair could reach $28,185. If the price turns down sharply from this level, it will indicate that the pair may consolidate between $25,000 and $28,185 for a few more days.

The positive view will invalidate in the near term if the price slips back below the 20-day EMA. That will embolden the bears who will again take a shot at the crucial support at $25,000. If this level cracks, the pair may collapse to $20,000.

Lastly please check out the advancement’s happening in the cryptocurrency world.

Enjoy the issue!