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(Kitco News) – The cryptocurrency market started the week off on a negative note as prices trended lower on Monday led by Bitcoin (BTC), which broke below support at $25,000 for the first time since June 15 amid historic lows in volatility, liquidity, trading volumes, and on-chain settlement volumes.
Stocks climbed higher following Sunday’s comments from Treasury Secretary Janet Yellen that she is “feeling very good” about the chances the U.S. avoiding a recession while also being able to put a halt to increases in the consumer price index (CPI). “I think you’d have to say we’re on a path that looks exactly like that,” Yellen said.
At the market close on Monday, the S&P, Dow, and Nasdaq all finished in the green, up 0.67%, 0.25%, and 1.14%, respectively.
Data provided by TradingView shows that Bitcoin lost support at $25,800 in the morning session and slid lower throughout the trading day, bottoming out near $24,900 in the late afternoon, with bears pushing for further declines.
BTC/USD Chart by TradingView
“September Bitcoin futures prices [were] again down in early U.S. trading Monday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The bears have the overall near-term technical advantage as a price downtrend line remains in place on the daily chart to suggest more sideways-to-lower price action in the near term,” Wyckoff said. “There are no early chart clues to suggest a market bottom is close at hand.”
MN Trading analyst Gunter Lackmann noted that last week saw “another short lived uptick in BTC price” that “barely pushed towards $26,500.”
BTC/USD 1-day chart. Source: MN Trading
“The order block is still holding support,” Lackmann said prior to Monday’s price drop. “RSI is still in an upwards trajectory. Feels like bulls are getting conditioned to believe that ‘all breakout attempts fail anyways’ and the bears are waiting for $12k.”
“Trading wise, staying sidelined until the market picks a clear direction makes sense, at least before taking on heavy exposure,” he said. “One news article or rumor could cause price to spike in either direction, but if that first move will then turn into a trend needs confirmation.”
Following the move lower, MN Trading founder Michaël van de Poppe posted the following tweet noting the move lower took longer than expected and highlighting the need to maintain support above $24,800.
There we go with #Bitcoin.
Took a lot of time. pic.twitter.com/3IpXKFNEZE
— Michaël van de Poppe (@CryptoMichNL) September 11, 2023
Cubics Analytics founder Caleb Franzen likewise highlighted the importance for BTC to hold onto support in the $23,800 – $25,300 range.
#Bitcoin needs to rally in this teal zone. If we fail to rebound here, you’ll see me get more bearish, particularly if we fall below the 200-week moving average cloud. pic.twitter.com/owjU7PTIGL
— Caleb Franzen (@CalebFranzen) September 11, 2023
Altcoins follow Bitcoin lower
All but four tokens in the top 200 recorded losses on Monday as the falling price of Bitcoin led to an exodus of traders from the altcoin market.
Daily cryptocurrency market performance. Source: Coin360
Trust Wallet Token (TWT) was the only coin with a notable gain, increasing by 5% to trade at $0.80, while Bone ShibaSwap (BONE) and Arbitrum (ARB) lost 11.5%, and Akash Network (AKT) fell by 10.3%.
The overall cryptocurrency market cap now stands at $1 trillion, and Bitcoin’s dominance rate is 48.7%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
