Bitcoin (BTC) sold off along with U.S. stocks at the open on Wall Street on Sept. 20 as risk assets took a breather from their macroeconomic rally.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin price 'bullish' over the weekend
Data from Cointelegraph Markets Pro Trading View After hitting a three-week high of $64,121 on Bitstamp, BTC price action has come full circle from the daily open.
The S&P 500, which hit a new all-time high following the Federal Reserve's massive interest rate cut on September 18, also fell along with the Nasdaq 100.
S&P 500 vs. BTC/USD 1-day chart. Source: TradingView
Gold has room to rise further, up 1% from the previous day at the time of writing, while BTC/USD was quick to reverse Wall Street's declines.
In response, prominent Bitcoin commentators were predictably optimistic about the market’s prospects.
“There are a lot of continuation signals here,” trader Roman said. Written About X.
“Price action is looking bullish on low volume as volatility corrects/forms to break through 65k resistance. No bearish divides or anything of that nature. Should continue to trade sideways for the next few days.”
BTC/USDT 4-hour chart and Relative Strength Index (RSI) data. Source: Roman/X
Fellow trader Daan Crypto Trades agrees with the importance of the $65,000 level, with Cointelegraph also reporting on its status as a liquidity magnet.
“The key is $65,000,” he said. said X number of followers.
“This is a big level in terms of liquidity and would signal a breakdown in the bullish market structure, which would propel the higher highs after the recent higher lows since the August sell-off.”
The attached chart features order book liquidity data for Binance's BTC/USDT perpetual swap pair from monitoring resource CoinGlass.
BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X
“We've only seen downside on the weekly chart so far,” said Cred, a popular X account. continuation Here's some of his latest content.
“Locally, this is the last plausible area of bear resistance, i.e. the last plausible area where a lower top could form if the bears are correct, and is approaching invalidation. A weekly close above $64,000 would ideally be impulsive and would signal a bullish break in market structure (for the first time in a while).”
Binance Demand Drives Coinbase Premium Down
Meanwhile, on-chain analytics platform CryptoQuant analyzed BTC buyer appetite and noted that Binance is leading the way ahead of U.S. exchange Coinbase.
Related: Why is Bitcoin price rising today?
The so-called Coinbase Premium (the difference between BTC prices on exchanges) hit a “significantly negative value” on the day.
“In other words, the fact that the Coinbase Premium is negative while Bitcoin's price is not falling during the current uptrend suggests that there is strong buying pressure on Binance,” wrote contributor “Avocado_onchain.” Quicktake Blog Post.
“For Bitcoin prices to rise significantly, FOMO (fear of missing out) in global markets would require buying pressure to extend beyond the US.”
Coinbase Premium chart (screenshot). Source: CryptoQuant
The post concludes that the trends are “fairly positive.”
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
