After weeks of bitcoin sitting at the top of the range around $30,000, price has found some temporary support at $25,000. Consensus market sentiment has shifted to a more bearish view overall with the chances rising for bitcoin to revisit the $20,000 level. In the move down, bitcoin lost all major support levels including the STH Realized Price, 200 DMA and 200 WMA all around $27,700. This area is critical to reclaim bullish momentum. With the current sentiment, fund flows were negative this past week with outflows of $70 million. Although in line with the last 30 days, global central bank liquidity continues to contract while the market is uncertain of the path of rate hikes or cuts. Bitcoin’s correlations have increased over the last 30 days to the Russel 2000, SPX, major tech stocks and high-yield debt, signaling a broader risk-off market move. All of this has come after eight straight weeks of U.S. dollar strength via the DXY. Largely the market remains fairly quiet with low on-chain activity and low trading volumes while most of the short-term price action is driven by speculators. We expect price chop to continue with an increasingly likely scenario that bitcoin retests lower supports before an ETF approval.
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PRO Market & Mining Dashboards: 9/13/2023
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Market Summary
After weeks of bitcoin sitting at the top of the range around $30,000, price has found some temporary support at $25,000. Consensus market sentiment has shifted to a more bearish view overall with the chances rising for bitcoin to revisit the $20,000 level. In the move down, bitcoin lost all major support levels including the STH Realized Price, 200 DMA and 200 WMA all around $27,700. This area is critical to reclaim bullish momentum. With the current sentiment, fund flows were negative this past week with outflows of $70 million. Although in line with the last 30 days, global central bank liquidity continues to contract while the market is uncertain of the path of rate hikes or cuts. Bitcoin’s correlations have increased over the last 30 days to the Russel 2000, SPX, major tech stocks and high-yield debt, signaling a broader risk-off market move. All of this has come after eight straight weeks of U.S. dollar strength via the DXY. Largely the market remains fairly quiet with low on-chain activity and low trading volumes while most of the short-term price action is driven by speculators. We expect price chop to continue with an increasingly likely scenario that bitcoin retests lower supports before an ETF approval.
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