September 26, 2023
London, UK

Can Bitcoin Break Above $19,000 After a Quiet Weekend?


Bitcoin had a quiet weekend after a stormy week that drove the number one cryptocurrency below the $19000 mark. Bitcoin is approaching the end of the third quarter with losses that exceed 10%, while YTD losses are up to 59%.

In a volatile week with major announcements as the Fed raised the interest rates by 75 basis points, the Swiss National Bank raised interest rates by 75 basis points to 0.50% and the Bank of England raised interest rates by 50 basis points to 2.25%.

JPMorgan Corporate & Investment Bank division head in an interview noted that demand for cryptocurrencies as a payment tool has drastically declined in the last six months but is gaining ground in the gaming and metaverse sector. Earlier this week JPMorgan CEO Jamie Dimon said that he is sceptical about cryptocurrencies calling them decentralized Ponzi schemes. However, he noted that he is not sceptical about blockchain technology and DeFi, calling them innovations. It is well known that Jamie Dimon is not a big fan of bitcoin; Back in October 2021 said that bitcoin is worthless, Bitcoin price at that time was $57,000.

In other news Coinbase (COIN) crypto exchange secured a license to offer its crypto exchange services in the Netherlands after AFM (the Dutch financial regulator) approved Coinbase to operate in the country.

Recent turbulence in risky assets and a rising US dollar (USD) has negatively impacted Bitcoin and cryptocurrencies. Ethereum today is down 1.56% at $1,296. Litecoin is 0.22% higher at $53.55 while XRP continues the rally adding 2.38% at 0.4984 on optimism that the case Ripple (parent of XRP) faces against the SEC may soon end. The Securities and Exchange Commission took Ripple to court back in December 2020 for allegedly selling XRP cryptocurrency as an unregistered security.

Bitcoin Technical Analysis

Bitcoin technical outlook is bearish for the short and for the long term as it continues to trade below the down-sloping major moving averages. It is crucial for the world’s oldest cryptocurrency to return above $19,000 which will give a short breath to the bulls. Initial support for bitcoin stands at $18,157 the low from September 21st. The critical support stands at $17,592 the yearly low, which if breached could lead to panic selling.

On the flip side, the first resistance would be met at $19,309 the top from Saturday’s trading session. The next level to watch on the upside is the high at $19,902 from September 21st. What can cancel the recent bearish trend is a break above the 50 and 100-day moving averages of around $21,200.

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