September has begun offering fresh selling pressure over the markets as the Bitcoin price dropped below the consolidation around $60,000. The price is stuck within a descending parallel channel, and the current rejection from the range may circulate bearish waves across the markets. However, there is some scope for hitting a new ATH by initiating a bull run, but to do so, the buyer’s interference is significant after achieving a certain range.
When will the BTC price break the descending consolidation? Will it reach $75,000?
The ongoing price action has raised suspicion over the next price action as the bulls are weakening after reaching the resistance. As a result, the price is facing rejection, slashing the price to its local support zone. However, the bulls still have scope for a bullish reversal and continuation, but a rise beyond certain levels may trigger a fine rise in the coming days.
As per the data from Coinglass, more than $22 billion has been leveraged around $70,500 in the past few days. This indicates that the short traders may have set stop losses around these levels, and hence a slight rise may liquidate all the short positions. With this, the BTC price is expected to trigger a huge upswing, which may help the token to form new highs. Therefore, the bulls are required to push the prices beyond this pivotal range, which may liquidate more than $21 billion of shorts.
However, considering the on-chain factors, the traders do not appear to be interested in trading BTC. The exchange balance has been plunging rapidly and has reached its lowest point in the past couple of years. While this flashes bullish signals for the price, the exchange volume indicator also shows a sustained drop.
As per the data from Glassnode shared by an analyst, ALI, the combined inflow and outflow volume within the exchange has dropped. This usually points towards a low investor interest in Bitcoin and also reduced network usage. With less trading activity, the BTC price may not be able to reclaim the crucial resistance at $60,000. However, more concern lies within the retail traders who are still short in the US futures, which are expected to induce huge volatility within the markets and show the real direction of the market.
Source: https://coinpedia.org/price-analysis/bitcoin-next-big-surge-could-be-explosive-but-bulls-need-to-push-the-price-beyond-these-levels/