Home News Bitcoin and Cryptocurrencies Continue to Trade within Established Range

Bitcoin and Cryptocurrencies Continue to Trade within Established Range

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Bitcoin and other cryptocurrencies experienced a slight increase on Thursday, although they still remain stuck within a well-established trading range. However, there is a positive side to this stagnation: cryptos are on track to outperform historical trends by finishing September in positive territory, which is historically the worst month for digital assets.

The price of Bitcoin has seen a 0.5% rise in the past 24 hours, reaching $26,375. Despite this increase, Bitcoin remains within the $26,000 zone that has served as a strong support level over the last month. This stagnant period for Bitcoin is among the most prolonged in its history, characterized by low volatility and trading volumes due to decreased investor interest in digital assets.

Katie Stockton, managing partner at technical research firm Fairlead Strategies, shares a short-term neutral bias concerning Bitcoin. She explains that the price of Bitcoin remains close to its 50-day moving average, with a minor loss of momentum. In the long term, Stockton maintains a neutral stance towards Bitcoin.

The prevailing sentiment towards cryptocurrencies is also neutral, as they lag behind the recent excitement observed in the stock market. Macro-economic catalysts that affect traditional markets, such as the Dow Jones Industrial Average and S&P 500, also influence Bitcoin. This lack of volatility over an extended period can be detrimental to digital assets, as they typically attract traders who are drawn to the rollercoaster nature of cryptocurrencies.

Boring Bitcoin Poised for Historic Gain in September

In a surprising turn of events, Bitcoin, which has often been associated with volatility, is on track to make history this month by ending September with gains. According to Dow Jones Market Data, Bitcoin closed out August with a 5 p.m. Eastern level just below $26,000. Unless rare volatility strikes in the coming days, the cryptocurrency is expected to finish the month in the green.

This achievement marks a significant milestone for Bitcoin. For the past six Septembers, Bitcoin has experienced consecutive declines, averaging a 6% decrease each year, as recorded by Dow Jones Market Data. However, recent trends suggest a shift in the cryptocurrency market.

Richard Mico, U.S. CEO of Banxa, a crypto payment and compliance infrastructure group, believes that Bitcoin’s resilience has become more evident in comparison to the sharp decline experienced by equities. Mico states, “Bitcoin has shown slight growth this month, which bodes well for the upcoming fourth quarter. We anticipate a particularly bullish October.”

Looking beyond Bitcoin, Ether, the second-largest cryptocurrency, has also experienced a modest gain of over 1%, reaching $1,620. However, smaller tokens or altcoins such as Cardano and Polygon have seen more subdued movements, remaining relatively stable or experiencing minor decreases of less than 1%. On a brighter note, memecoins like Dogecoin and Shiba Inu have shown optimism by achieving a less than 1% increase.

Overall, the digital asset market appears to be holding its ground and maintaining a positive trajectory. As we enter the final quarter of the year, it will be interesting to see how Bitcoin and other cryptocurrencies continue to perform.

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