Today we’re diving into a midweek crypto market update, covering key movements in prices and trends. Recently, all markets – not just crypto – have been highly unpredictable. Investors are left uneasy, trying to decipher the current trends and potential future directions.

The crypto market is notorious for its volatility, but the unpredictability of the current environment is unsettling. The overarching question is: where are we headed, and are we on the verge of a bigger shift in the market? Today, we’ll take a closer look at Bitcoin’s (BTC) price movements and what that means for the broader crypto space.

As always you can watch this video to get my full analysis, or read my summarized version below.

Bitcoin Update

Let’s dive into Bitcoin’s chart. Since mid-March, Bitcoin has experienced a consistent pattern of lower lows and lower highs, with several failed breakout attempts. Currently, Bitcoin is trading at just over $56,000, down just over 22% from its peak in mid-March. While that might sound alarming, in the context of the crypto market’s notorious volatility, it’s not an exceptionally large correction.

What is more interesting – and perhaps concerning – is the length of this correction period. This is the longest mid-bull market correction we’ve seen in crypto history. Some might even begin to question whether we’re still in a bull market at all. However, I believe it’s too soon to call it quits. There’s no significant confirmation yet that the bull market has ended.

Since late spring, Bitcoin has been stuck in what we might call a neutral period. After failing to break above the downward trend line in May and early June, it became clear that the market was uncertain about its next move. However, things might be on the verge of turning around. Bitcoin bottomed out on August 5th, setting a new low for this correction. But in a matter of days, it managed a sharp recovery, breaking above $60,000 and testing the 100-day moving average.

Unfortunately, BTC was unable to clear the $65,000 mark, stalling at around $64,000 and retreating slightly since. Over the weekend, Bitcoin attempted to set a new low but managed to hold just above the previous low from August 5th. By the slimmest margins, Bitcoin has posted a higher low, which is an encouraging sign.

If Bitcoin can hold these levels in the coming days and break above $64,300, it would mark the first higher high since March. That would be a significant bullish indicator for the market, likely prompting another wave of optimism and increased buying pressure. However, we are still in uncertain territory, and it’s a 50/50 shot whether Bitcoin breaks above $65,000 or retests the $50,000 level.

As always, in times of uncertainty, all eyes are on Bitcoin. The broader crypto market, including altcoins, is following Bitcoin’s lead. Until we get confirmation of a clear direction, we’re unlikely to see any significant movement across the board.

Upcoming Market Drivers

There are a couple of key events on the horizon that could heavily influence Bitcoin’s next move. The first is the U.S. presidential debate, which is taking place on Tuesday, September 10th. Presidential elections often inject volatility into financial markets, and the crypto market could be no different. We’ll see how the candidates address economic and financial policies, as this could provide some momentum in either direction.

The second major event is the Federal Open Market Committee (FOMC) meeting on September 19th. This is the event to watch closely. If the FOMC, led by Jerome Powell, signals any form of interest rate cuts, that could give the market the bullish push it’s been waiting for. Should Powell hint at any loosening of monetary policy, crypto investors are likely to breathe a collective sigh of relief. A bullish reaction would probably lead to Bitcoin breaking above $65,000.

Conversely, if the FOMC meeting delivers bad news or no policy changes, we could see a bearish response and a potential retest of the $50,000 level for Bitcoin.

Final Thoughts

The next 10 days are pivotal for Bitcoin and the broader crypto market. We’re likely to see a resolution to this period of uncertainty with Bitcoin either breaking out above $65,000 or falling back to test $50,000. Both outcomes will likely be accompanied by significant volatility, so it’s crucial to stay prepared.

In the meantime, the key levels to watch are $64,300 on the upside and $50,000 on the downside. Depending on which direction Bitcoin moves, the entire market could follow suit. Patience and careful risk management are vital as we navigate this uncharted territory. Make sure to keep some liquidity on hand to capitalize on the opportunities that present themselves once we get confirmation of the market’s next move.

Stay patient, stay informed, and trade safely. We’ll get our answer soon.

Editor’s Note: Cryptocurrency has been the best returning asset class of the last decade and is know for its parabolic bull markets. It is also a key to a truly diversified portfolio and one of the best hedges against the potential risks that lie ahead in markets. But you need to act now before institutions gobble it all up.

If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.

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