Keynote
- Bitcoin is expected to settle below $110,000 following the recent 25 basis point rate cut by the Fed.
- Trading volume dropped by 48% over the weekend, signifying diminished liquidity and heightened downside risk.
- Michael Saylor has recently renewed his Bitcoin purchases, despite the strategy focusing on reducing its $4 billion stake.
As of Sunday, September 28th, Bitcoin prices were hovering around $109,500. CEO Michael Saylor is rallying support as trading metrics indicate increasing risks on the downside.
The Federal Reserve’s 25 basis point interest rate cut on September 18 triggered a seven-day sell-off, pushing Bitcoin below $110,000 for the first time in 20 days on September 25. Since then, Bitcoin has struggled to regain that level, and a further 33% drop in trading volume on Sunday suggests a lack of confidence moving forward.
Still, Saylor, who leads Corporate Strategy, remains optimistic. He recently encouraged his 4.5 million followers to consider buying more Bitcoin, despite the market’s ups and downs.
Currently, amid the ongoing adjustments in Bitcoin’s value, reserves have shrunk by 5%, with total holdings dropping from $74 billion to $70 billion since the last purchase on September 22.
Bitcoin Price Test Double Top Signals $109K
Since the Fed’s decision, Bitcoin’s price has taken a downward trend, facing strong resistance around the $110,000 mark, as indicated by repeated failures to break that barrier over the weekend.
From a technical analysis standpoint, the BTCUSD Daily Chart reveals a double-top formation between $111,000 and $112,000, with a support range beginning at $100,780. The relative strength index (RSI) has also neared overselling territory recently, reflecting a decline in buying pressure.
If Bitcoin fails to recover $110,000 in the near term, the next significant support level could be around $106,500. A break below this level could bring psychological support at $100,000 into play. On the flip side, regaining $112,000 could reverse the bearish trend and set the stage for testing $119,000 resistance, which aligns with the upper Bollinger band.
In conclusion, Bitcoin’s price outlook appears vulnerable for the week ahead. Technical indicators suggest a potential slip towards $100,000 unless liquidity improves and demand picks up. Traders will be curious to see if Saylor’s renewed purchase calls will prompt action from other business leaders in the U.S. to stabilize price movements as September comes to a close.
