Bitcoin tests the $59,000 support level, and liquidity may be scarce or continue until September

On Friday, the July personal consumption expenditure (PCE) index announced by the US was in line with economists' expectations, further strengthening investors' expectations for interest rate cuts at the September FOMC meeting. The financial market showed a slight fluctuation trend.

Comparative data shows that after the inflation report was released,BitcoinIt climbed to an intraday high of $59,945, then experienced a sharp correction to an intraday low of $57,704, and the bulls then pushed it back above the $59,000 support level. At press time, BTC was trading at $59,036.66, or about 0.9% in 24 hours.

Most altcoins showed losses this week, and Sun (SUN) continued to lead the way, rising 13.9% on Friday.Beam(BEAM) is up 6.5% and Just (JUST) is up 5.5%. Popcat (POPCAT) saw the biggest drop, falling 15.3%, followed bybinaryX(BNX) andKlaytn(KLAY), down 12.4% and 10%, respectively.

Currently, the overall market value of cryptocurrencies is 2.07 trillion US dollars, and Bitcoin's market share is 56.2%.

Bitcoin's average return in September was -4.78%

After falling more than 10.7% on the monthly chart, the price of Bitcoin remained below the psychological threshold of $60,000. Analysts believe that in order to be profitable at the end of August, the monthly closing price of Bitcoin would need to be higher than $64,300. Currently, it seems that this may be difficult to achieve.

BitfinexAnalysts have warned thatThe lack of summer mobility is likely to continue until September.This makes it difficult for Bitcoin to break through the $63,900 resistance level: “The price is a reflection of historical market transactions, and we must thoroughly understand it. BTC once rose to the realized price for short-term holders (around $63,900), so we've also seen some profit returns from the STH (short-term holder) group.”

The analyst added that since 2013, Bitcoin's average return in September was -4.78%.

Decrease in trading volume

Total Bitcoin trading volume on exchanges has been declining since the boom in spot ETF approvals surged and hit a record high.CryptoQuantAnalysts say Bitcoin's apparent demand metrics have “significantly slowed.”

According to CryptoQuant, apparent demand is the difference between the total amount of daily Bitcoin block subsidies and the daily change in the amount of bitcoin that has remained stable for a year or more.

The analyst stated: “Demand has declined from a 30-day increase of 496,000 BTC (the highest level since January 2021) to a negative increase of 36,000 to date. As demand slowed, the price dropped from around $70,000 to a low of $49,000.”
In this week's The Week Onchain newsletter, Glassnode analysts concluded that Bitcoin's momentum is gradually weakening as the market has been in a “structurally ordered downward trend” for the past 5 months. Among other factors, analysts also pointed out that market interest in leveraged positions is waning, while the excitement sparked by the launch of a spot Bitcoin ETF and BTC's all-time high above $73,000 is slowly fading away.And the rest of the upward catalyst(For example, participants want Trump to win the election, spot BTC and ETH ETF inflows to resume strong, and the Federal Reserve to restart quantitative easing policies, etc.)It hasn't been realized or arrived yet.

A Secure Digital Markets analyst stated in a report: “After showing bullish momentum last week, Bitcoin fell sharply below the $64,500 level at the beginning of this week. On Monday afternoon, the BTC price began to drop sharply by 10% due to significant selling pressure after the market failed to maintain the $64,000 support level. This decline indicates that the Bitcoin price may continue to fluctuate within the descending parallel channel shown on the daily chart.”

“The BTC price is currently in the middle of this channel at $58,440, but if the selling pressure continues and $58,000 is tested again, the price could drop further to $54,000,” the analyst warned.

Author: BitPushNews Mary Liu

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