Over the past 24 Hours, Bitcoin has rejected from a key resistance level that being $59,340 - more ranging price action is to be expected.

Price action on Bitcoin has been struggling to break above a key resistance level causing the recent rejection back to support. This level needs to hold otherwise weakness is prevalent.

The market is in an interesting spot here where a range can form for more rotations, if a break occurs, much lower will then be on the horizon.

In recent news events, Ripple Releases Another 1 Billion XRP and Central banks buying gold at record levels

Today’s report will also include:

• Updated Technical Analysis

• Other key market developments

• Wisdom Centre

Bitcoin Price Analysis

Current Price Action

The current rejection from price action was after a deviation of the range high that ifs currently containing price action - Bitcoin has managed to correct all the way to the lows of the range.

Price action is testing the overall support of the range low, consolidating here on the lower timeframe is likely before a bounce. The bounce needs to have strength for a rotation all the way back up.

Again, having a zero bias approach is critical here - price action simply is rotating between the two support and resistance levels. This can continue until this location is left with a strong expansion.

The Key Resistance level $59,340

The most critical resistance level at the current moment in time is the $59,340 resistance. Price action has failed to break above this key level over the past week.

This recent rejection was from the same level, proving its significance once again. Bitcoin bulls need to break and trade above this level on a closing bases for any strong signs of strength.

Overall, weakness is evident as long as price stays below this resistance - $59,340. Support is also clear and needs to be defended by the bulls - that is the overall range low.

Bitcoin Insider will continue to monitor these time sensitive price development for the next update.

Latest Market News

Ripple Releases Another 1 Billion XRP

On September 1st at 10:50 UTC, Ripple released 1 billion XRP tokens from its escrow, which was worth over $560 million, as reported by Whale Alert. Ripple's CTO, David SCHWARTZ, stated that these monthly releases are intended to stabilize market expectations.

Since 2017, Ripple has secured 55 billion XRP in escrow to manage its supply and reduce price volatility. SCHWARTZ mentioned that while the escrow contracts end monthly, the tokens typically stay in escrow unless explicitly moved.

Although Ripple unlocks a billion XRP each month, the actual amount that hits the market is usually less, allowing for fine-tuned control over the supply based on market dynamics and Ripple's operational requirements.

However, this particular release saw XRP's price fall by 2.4%, trading at about $0.557, sparking discussions on whether Ripple's method of handling XRP supply is effective or transparent enough.

Central banks buying gold at record levels

Central banks around the world are significantly increasing their gold reserves, setting new records for purchases in 2024 as they shift towards assets considered safe havens. According to a report by the Kobeissi Letter shared on X (formerly Twitter) on September 2, central banks accumulated 483 tonnes of gold in the first half of 2024, surpassing the previous record by 5%.

This trend continued into the second quarter where an additional 183 tonnes were acquired, indicating a 6% year-over-year increase. Notably, the National Bank of Poland, the Reserve Bank of India, and the Central Bank of Turkey emerged as the most aggressive buyers during this period.

The President of the National Bank of Poland, Adam Glapinski, has publicly stated their intention to increase gold's share in their reserves to 20%, highlighting a strategic move towards diversifying away from traditional reserve currencies amidst global economic uncertainties.

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Daily Wisdom

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