The world's largest cryptocurrency, Bitcoin, continues to trade below the $110K mark, raising questions about future market movements. Analysts are noting key resistance and support levels.
Resistance Holding Strong
Michaël van de Poppe, founder of MN Trading, highlighted that Bitcoin has failed to overcome its resistance and the 20-week EMA. 'Resistance remains resistance, couldn’t break through it,' he warned, suggesting a possible formation of a new local low.
Ethereum Eyes Correction Levels
Ethereum has also mirrored Bitcoin’s weakness, trading near $4,275 after a rejection at higher levels. Van de Poppe suggested that Ethereum could correct towards the $3,600–$3,900 range, which he sees as a green accumulation zone.
Volatility Near Multi-Year Lows
Bitcoin options markets are signaling historically low implied volatility. Data indicates that one-month implied volatility remains around 30%–35%, levels often associated with sharp breakouts.
With September traditionally being one of the most volatile months for markets, Bitcoin and Ethereum's current behavior raises the question of the potential for significant fluctuations. The market may show moves either towards declines or recoveries.
