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Bitcoin has struggled in September so far, posting a loss of about 9% in the last 30 days and 4.76% in the last 7 days. However, it showed resilience over the weekend, climbing roughly 1%. The current market cap stands at $1.1 trillion, while the 24-hour trading volume has increased by 30%, reaching $22 billion.
US Bitcoin exchange-traded funds (ETFs) record their longest streak of daily net outflows since their January debut. Over eight consecutive days through September 6, investors withdrew approximately $1.2 billion from the group of 12 ETFs, according to Bloomberg data.
This exodus occurs against a backdrop of broader market concerns, with global stocks and commodities feeling the pressure of economic growth worries. Mixed US jobs data and deflationary pressures in China have contributed to trader unease. The cryptocurrency market, increasingly correlated with traditional stock movements, has not been immune to these effects.
The US presidential race is also factoring into market sentiment. Arthur Hayes, co-founder of the BitMEX trading platform, noted increased demand for options hedges in anticipation of potential volatility following the upcoming debate between Donald Trump and Vice President Kamala Harris. Trump's improving poll numbers and his pro-crypto stance may be influencing market dynamics.
Despite recent outflows, it's worth noting that US Bitcoin ETFs had a strong start earlier this year. Their January debut sparked unexpected demand, helping drive Bitcoin to a record high of $73,835 in March.
Bitcoin's price action has been following a downtrend in recent days. BTC recently tested a low of around $52,530, which could potentially mark the bottom of this move. If this bullish flag support level doesn't hold, we might see Bitcoin reaching the $49,000 to $50,000 range.
The bearish trend has been in place since Bitcoin hit a recent high at around $65K on August 25. However, zooming out, Bitcoin has been consolidating in a bullish flag pattern since March of this year. This consolidation is viewed as extremely bullish by some analysts, who consider it a continuation pattern that could precede a significant upward move.
The MACD, which is currently bearish, suggests a potential for further downside in the short term. The daily RSI stands at 38, indicating that Bitcoin is approaching oversold territory but hasn't quite reached extreme levels yet. Key support levels to watch include the recent low around $52,500 and the psychologically important $50,000 mark. On the upside, resistance can be expected near the recent high of $65,000. These levels often act as points where buying or selling pressure may intensify.
This longer-term pattern suggests that despite short-term bearishness, the overall trend remains bullish. Some analysts predict a potential surge to $100K in the coming quarters. The flag pattern is formed by a period of consolidation following a strong upward move, often leading to a continuation of the uptrend.
