‘Redtember’: Bitcoin Holds Steady Amid Labor Day Lull, Will it Drop Below $50,000?

The post ‘Redtember’: Bitcoin Holds Steady Amid Labor Day Lull, Will it Drop Below $50,000? appeared first on Coinpedia Fintech News

As September begins, Bitcoin is hovering around $59,000, a historically bearish month for the cryptocurrency. September has a reputation for being one of Bitcoin’s most bearish months, with historical data showing an average decline. However, there is hope among some market participants that a potential interest rate cut by the Federal Reserve could break this negative trend. 

On the political front, election betting markets are showing a shift in sentiment. Over the weekend, odds for Democratic candidate Kamala Harris dropped to 47%, while Republican candidate Donald Trump’s chances rose above 50%. Keeping the above points in mind, here is an analysis of the price.

Short-Term Movements

Analyst Josh of Crypto World said that Bitcoin has made a nearly perfect bounce from its support zone, slightly above $57,000. This support level, ranging between $56,000 and $57,000, is important for the short-term price action. If Bitcoin continues to climb, it will likely face resistance around $59,500, as shown by the volume profile. Beyond that, further resistance levels are present at $60,000, $61,000, $62,900, and $64,500. These levels are important to watch as Bitcoin tries to break free from its bearish grip.

A Bullish Signal Emerges

After a recent bounce, Bitcoin’s RSI (Relative Strength Index) has shown a higher low, confirming this bullish divergence. Over the last day, this divergence has started to play out, leading to a slight bullish relief. Historically, such divergences result in short-term upward movement or choppy sideways price action, suggesting that Bitcoin may experience a bit more relief in the coming days..

Liquidation Heat Map: Key Levels to Watch

The Bitcoin liquidation heat map reveals areas of liquidity that could influence price movements. Currently, there’s liquidity to both the upside and downside, with notable amounts just below $57,000. This suggests that while there’s potential for upward movement, there’s also considerable risk of a pullback.