Bitcoin Price Stabilizes Around Key Support Levels Amid September Fed Hike Fears

Bitcoin's price has been trading between $77,850 and $78,125 in the early hours of Tuesday morning. This marks a pullback from the $79,000 area and brings it near the bottom of its post-rally trading range. The start of September presents a split technical setup, with August's sharp run-up losing some steam in the short term but maintaining a strongly bullish reading on longer-term moving averages.

Key support levels for Bitcoin remain at $77,100 per coin, as identified by Bitfinex market strategists. This level has been emphasized as crucial due to its connection to a 57% chance of a September Federal Reserve rate hike. In addition, the analysts highlight that continued spot buying without excessive leverage is an important bullish factor.

The daily chart's moving averages continue to lean heavily bullish, with 14 positive signals and zero negative readings. The 200-period EMA sits at $72,297, while the 50-period EMA is at $70,039. This indicates that the bigger trend remains intact despite short-term weakness.

In a report shared with Bitcoin.com News, Bitfinex analysts mentioned that the latest advance appears to have come more from spot demand than excessive leverage. They note that open interest has only gradually increased, while basis has remained relatively low and at healthy levels historically.