BTC/USD Price Analysis: ADX Indicator Falls to the Lowest Level of 2023
The latest news from the world of cryptocurrencies could be both bearish and bullish drivers:
→ PayPal launches a stablecoin that will be pegged to the dollar and backed by US Treasuries;
→ Cathie Wood believes that the SEC can approve several BTC ETFs at the same time;
→ the Central Bank of Brazil plans to launch its digital currency called DREX in 2024;
→ rumors about problems with the USDC stablecoin are spreading in the network;
→ the US Department of Justice is considering filing fraud charges against Binance.
However, the BTC/USD rate has stabilized around USD 29,000 per coin since July 25th. The bitcoin market is showing unusually low volatility (except for the surge associated with news from the Fed). At the same time, the ADX indicator, which helps determine the presence of a trend, fell to its lowest level since 2023. Obviously, this indicates that the market is flat. But note the trend that followed in early 2023 as the ADX fell close to its current low.
At the beginning of August, the BTC/USD rate was limited by the resistance level of 29,900 and the support level of 28,800. A breakdown of one of these levels can lead to the beginning of a strong trend against the backdrop of a low ADX value — this has happened more than once historically.