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Bitcoin, the largest cryptocurrency by market value, began an uptick that saw highs of $26,460 in today's session.
Bitcoin generally remained below $26,000 as traders awaited the SEC's decision on the launch of a spot Bitcoin ETF in the United States. September has historically been a challenging month for Bitcoin, with negative returns every year since 2016. So far, 2023 seems to be aligning with this historical narrative.
Bitcoin's rise past $26,000 in today's trading coincided with a buy signal from the popular TD sequential indicator. According to crypto analyst Ali, TD Sequential provided a buy signal on Bitcoin's three-day chart.
In this scenario, Ali postulates that a sustained close above $26,800 might pave the way for Bitcoin to reach $28,000. However, a price decline below $25,300 would nullify this bullish scenario.
At the time of writing, BTC was up 1.08% in the last 24 hours to $25,909.
Bitcoin bulls face uphill task
As previously mentioned, the odds are stacked against BTC bulls in September, a historically bearish month for Bitcoin. Aside from that, Bitcoin is on track to create a bearish death cross signal on its daily chart for the first time since January 2022.
Cryptocurrency trading activity fell to its lowest level of the year in August, which might be another indicator of waning investor interest.
Bloomberg reported that the aggregate monthly volume of spot and derivatives trading decreased 11.5% to $2.09 trillion, the second-lowest monthly total since October 2020.
The lackluster interest appears to be continuing into September, with Bitcoin remaining relatively unchanged for much of the first week of the month.
All this said, Bitcoin bulls might face an uphill task in forging ahead, but the potential for an upside move remains.
Alex Dovbnya
Dan Burgin
Vladislav Sopov