28. September 2023

Bitcoin price can break the upstream channel it is in despite the OKEx scandal

The Bitcoin price lost the upward momentum that drove the price to USD 11,700 earlier this week, but the current range may offer opportunities for swing traders.

Earlier this week, the price of Bitcoin (BTC) entered a bullish phase at $11.725, following the news the previous week that Square bought $4.709 at BTC, but since then the price has again fallen into a lateral range (with little change).

According to Coinmarketcap, Bitcoin’s market capitalisation is currently USD 196,871,013,843.

Several rejections close to USD 11,500 and the recent news that OKEx has stopped all withdrawals while its CEO “cooperates” with an investigation being carried out by the Chinese authorities is also affecting investor sentiment and the price of Bitcoin.

Be sure to read: Bitcoin Forecast: What will be the price of bitcoin in 2020 according to experts?
Snapshot of the daily performance of the cryptcoin market. Source
: Coin360
The wave of negative news has once again turned the price of most altcoins red and extinguished the newly found upward momentum that the price of Bitcoin was showing.

The daily timeframe indicates that losing $11,200 could open the door for the price to try again at $11,100, a level that resides in a VPVR gap and would probably lead to a further fall to $10,900.

According to Michael van de Poppe of Cointelegraph:

“Significant support of $11,000 is now a must to resume the upward momentum, which may have difficulty in breaking out of current levels, while the new coronavirus closures are scaring investors.
Van de Poppe suggests that if Bitcoin loses the $11,000 support there is a possibility that the price could fall below $10,000 to the $9,750 200-MA which is close to a CME gap.

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Although the current price action is disappointing for the bullish people who want to see a new test of the USD 12,000, at first sight it seems that there are multiple factors that play in favour of Bitcoin’s price.

The recent acquisitions of BTC by MicroStrategy, Square and Stone Ridge are positive, especially considering the current economic uncertainties that exist as a result of the COVID-19 pandemic.

In addition, volumes are increasing again on multiple BTC futures exchanges and on Friday Cointelegraph reported that Bakkt, the Bitcoin exchange, reached a new record for BTC deliveries.

The Bitcoin price has also largely ignored most of the negative news over the past two months and has remained above the $10,000 level, as buyers are showing a steady interest in buying near this level.

Support levels are expected to be tested again

It is also worth noting that it has only been a week and a half since the price of Bitcoin came out of a 24-day compression phase, which was followed by the most recent break, up to $11,750.

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BTC/USDT daily chart. Source: TradingView
Since the breakout the price has again tested the $11,200 level as support, but a deeper retreat to the 20-MA to test the $11,000 level as support would not be out of line. Even a fall to the $10,650 level near 100-MA would simply be a repeat of the downward trend line from the 2020 high of $12,467.

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In the short term, it seems likely that Bitcoin price trading will fall in the area of $11,400 to $9,700, a range that may become a haven for swing traders.

The views and opinions expressed here are those of the author alone and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.