Bitcoin and several major altcoins continue to show weakness, but some data points do favor bulls in the short term.

Bitcoin has been trading between $25,300 and $26,100 since September 1. Typically, a volatility squeeze is followed by a volatility expansion, but it is difficult to predict exactly the direction of the breakout.

CoinGlass data shows that Bitcoin has fallen for six consecutive years in September. This historical data may make bulls feel trapped in the short term and make bears more emboldened. In addition, the US dollar index (DXY), which is negatively correlated with Bitcoin, has risen sharply in the past few weeks. Both of these indicate that Bitcoin may still face pressure in the short term.

It’s not all gloom and doom for crypto bulls as lower levels could attract buyers. The prospect of one or more Bitcoin spot exchange-traded fund applications getting approved could limit downside. Some analysts see this event as very bullish for Bitcoin. Any positive news on this front could push prices higher.

From a macro perspective, there may be weakness in the short term, but buying at lower levels is likely. What are the important support levels to watch out for? Bitcoin has been trading below $26,000 for the past two days and the bears are attempting to pull the price towards the important support of $24,800.

The downward sloping moving averages suggest that sellers have the advantage, but the positive divergence on the relative strength index (RSI) suggests that the bearish momentum may be fading.

Buyers must push and sustain the price above $26,800 to start a rally to the 50-day simple moving average (SMA) ($28,048). Such a move suggests that the price might remain stuck in the large range between $24,800 and $31,000.

Meanwhile, the bears may have other plans. They will try to push the price below the $24,800 to $24,000 support area. If they succeed in doing this, the sell-off may accelerate and Bitcoin may plummet to $23,000. The $25,000 and $23,000 levels I mentioned in my article two days ago, you might as well pay attention to them, as these are very important areas in September. $BTC