Bitcoin’s price increased by 0.77% from September 15 to September 22, reaching US$26,647 as of Friday evening’s 8:30 p.m. local time in Hong Kong. According to data provided by CoinMarketCap, the cryptocurrency with the greatest market capitalization in the world has been trading for less than US$30,000 since August 9th. Ether, the second most valuable cryptocurrency in the world, experienced a weekly loss of 1.48%, bringing its price to $1,598 USD.
Price fluctuations in complex markets are the result of the interaction of a myriad of factors.
Bitcoin reached a new weekly high of US$27,475 on Tuesday after the news was made by Nomura. However, the cryptocurrency dropped to US$26,413 on Thursday, breaking below the US$27,000 support level.
“A trendline from the recent resistance level of US$31,000 down through the pivot points gives us US$27,000 as considerable resistance,” stated Yield App’s Kiely in the article.
“The more times Bitcoin is turned down at this level, the higher the chances are that it will eventually break through. It would appear that this is the reason why Bitcoin is showing bullish indicators, at least on a short-term basis. This is despite the fact that the pattern for Bitcoin over the longer term is bearish.
Will Clemente, the co-founder of Reflexivity Research, said on Twitter on September 16 that Bitcoin’s annual transaction volume had overtaken that of payments giant Visa. This was one of several recent milestones.
According to Manuel Ferrari, the co-founder of Money On Chain, the first Bitcoin-backed stablecoin protocol on Rootstock, this event marks a key milestone for Bitcoin and illustrates the cryptocurrency’s rising influence in the world of finance.
It is expected that demand for bitcoin will continue to increase as more people and organisations become aware of its capabilities. This may lead to higher levels of liquidity and values for Bitcoin as an asset class,” Ferrari stated in a statement that was shared with Forkast.
The bankrupt cryptocurrency exchange FTX was granted permission by a court last week to liquidate its cryptocurrency holdings, which are estimated to be worth over $3.4 billion USD. It is possible that this may result in further selling pressure on the cryptocurrency market for the remainder of the year, particularly for Solana, which is the largest holding of the defunct exchange and is currently valued at $1.16 billion USD. FTX also has Bitcoin worth 560 million US dollars and Ethereum worth 192 million US dollars in its possession.
According to Ferrari, who works with Money On Chain, FTX’s liquidations could lead to a new bottom for alternative cryptocurrencies and damage investor sentiment.
“The influx of these assets into the market could increase supply, leading to downward pressure on prices,” Stadelmann wrote in a statement for Forkast. “However, it is most likely that the market will absorb these sales as FTX offloads coins in a controlled manner.”
Kiely, from Yield App, stated that FTX’s Bitcoin holdings of around US$560 million will likely have a minimal influence on Bitcoin’s market capitalization of US$518 billion, although he did caution that it could create extra market uncertainty.
The Federal Reserve in the United States maintained the status quo with regard to its benchmark borrowing rate, but it did provide a clear indication that there will most likely be one more increase in interest rates before the end of the year. As a result of the hawkish comments, key U.S. stock futures experienced a decline on Thursday, which marked the opening trading day of the week.
Notable movers: IMX, TONNE
The native token of the ImmutableX NFT platform, known as IMX, saw the greatest weekly gain among the top 100 cryptocurrencies, increasing in value by 33.8% to reach $0.6625. According to a fictitious blockchain expert by the name of Lookonchain, the wallets belonging to the Upbit exchange were responsible for the accumulation of US$9.45 million worth of IMX tokens on Thursday, even though the rallying of the coin didn’t begin until Thursday and there were no obvious news catalysts.
He also mentioned that the wallet affiliated with Upbit has IMX worth US$15 million, which places it in tenth place among the largest holders of the asset.
Toncoin had the second-largest weekly rise among the top 100 cryptocurrencies, increasing in value by 17.37% to $2.29 USD. Since Telegram announced its cooperation with Toncoin the previous week, there has been a considerable increase in investor interest in the cryptocurrency. The pickup in Toncoin’s momentum began last Friday.
Will the price of bitcoin be able to increase above $27,000 US dollars?
The price of Bitcoin has hit a wall at US$27,000, meaning that it is struggling to rise above this level. If it does manage to break above this level, it could then rise to US$28,800, where it would likely face resistance again. However, if it falls below US$27,000, it could then fall to US$23,000, where it has strong support.
According to Stadelmann of Komodo, the price action of bitcoin will continue to be muted because wider economic concerns will keep investors wary.
“Any macroeconomic crisis, such as a sell-off in the stock market, is likely to bring down Bitcoin, with the exception of a credit crisis, which will most likely see Bitcoin trading at higher prices.” According to what Stadelmann has written, there are several indicators currently on the chart that suggest it is better to maintain a bearish stance on a medium-term timeline.
On Thursday, Jerome Powell, the chairman of the Federal Reserve of the United States, will deliver a speech that investors will be closely watching. Powell will be holding a town hall meeting with local educators in Washington, District of Columbia.