- Bitcoin has a bullish RSI divergence on the daily time frame that suggests an incoming relief rally beyond $26K.
- High-impact news has led FTX to increased selling pressure and caused market uncertainty leading to heightened BTC volatility.
Bitcoin (BTC) price suddenly rebounded from recent lows of around $25K, to trade at about $25.8k on Tuesday. As a result, more than $88 million in spot Bitcoin leverage trading has been liquidated in the past 24 hours. According to market data provided by Binance-backed Coinmarketcap, there was a more than 113 percent spike in daily average traded volume to about $18.3 billion. Hence, the overall Bitcoin volatility is expected to remain high in the coming days.
Moreover, Bitcoin price consolidated around $26K in the past three to four weeks with minimal deviations in either direction. Meanwhile, the dreaded daily death cross between the 50 and 200 moving averages (MA) happened in Bitcoin during the past 24 hours. As a result, Bitcoin price could continue dropping below $25K in the coming weeks but after the liquidity around $27.5k is taken out.
Crucial Events that Will Influence Bitcoin Volatility
Bitcoin price faces heightened volatility in the coming few days amid high-impact news from the United States. On top of the list, the FTX liquidation plan is expected today, according to a Monday court filing that shows the exchange has about $1.16 billion in Solana (SOL) and $560 million in Bitcoin.
Worth noting that FTX is likely to liquidate the assets through an OTC order, which could have minimal effect on the spot price. Moreover, Bitcoin has significantly matured to accommodate frequent ready buyers and sellers.
Crypto investors will also be seeking to analyze the Binance US response to the SEC’s confidential motion later on Tuesday. Furthermore, Binance US has continued to accuse the SEC of the lack of evidence in its accusations, which stated that the exchange has commingled customers’ funds with its corporate money. According to legal experts, the SEC filed a confidential motion in a bid to adhere to the DoJ, which has filed criminal charges against Biannce US.
As I said on @CryptoLawUS and other channels, it will be interesting to see whether @binance objects to the SEC’s Motion to Seal certain documents (over 30 plus exhibits). Binance’s response could be insightful regarding the nature of the documents. https://t.co/j7Gt5Wn7nH
>> Buy Solana (SOL) quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website <<— John E Deaton (@JohnEDeaton1) September 10, 2023
Another notable event expected on Tuesday is the full committee hearing with SEC chair Gary Gensler, which is meant to conduct oversight of the Securities and Exchange Commission. With the recent court ruling regarding the crypto industry, the SEC chair is likely to be grilled on the agency’s position in spot Bitcoin ETF, which has been applied by several fund managers led by BlackRock and Valkyrie.
Crypto traders will also be monitoring the high-impact news from the United States Bureau of Labor Statistics in regard to the consumer price index (CPI), which is expected to be released on Wednesday. On Thursday, the European Central Bank will be releasing the monetary policy statement. Additionally, the United States Bureau of Labor Statistics will release the PPI data on Thursday.
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