The hype surrounding Bitcoin is no doubt subsiding as the coin fails to meet traders’ expectations. It ended the previous month with more deficits after sparking a hint of hope that there would be more bullish trends two months ago. The largest cryptocurrency by market cap gained over 17%, rising from $ 19,000 to a close of $ 23,000.
The last 30 days have been the exact opposite as we have observed the price change. This time, BTC has fallen from the previous close to the opening price ($ 23k- $ 19k). It is safe to conclude that it has eliminated all traces of an upward trend. However, the price trend reflects the forecasts of an earlier outlook.
The analysis said August was not one of the best months for the apex of the coin and may face further bearish trends. It has also defined some key levels and expects the $ 20,500 support to change. The price actions at this time turned out to be true as we looked at the closing price.
However, there were both positive and negative stories around the coin during the previous month. One of these is the announcement that a Bitcoin ATM seller’s share will soon go public. A dormant portfolio in the past nine years has gone live with a profit of $ 96 million. Unfortunately, CFTC vharges man for allegedly running a $ 12 million Ponzi scheme
Following the massive price drop, many traders are looking forward to a better performance this month. Will they take it? Let’s look at some factors
The substantial decline in the value of the first coin paints the entire cryptocurrency market in a bad light. A previous survey concluded that noobies are becoming less interested in almost all of these assets, especially BTC.
However, more entities are stepping up their interest in cryptocurrency. One of them is Armenia. The nation is taking advantage of certain factors and wants to position itself as the largest BTC hub in the world.
The United States is also seeing an increase in adoptions as more companies paid their employees in bitcoin at the end of the previous month. It is safe to say that it is difficult to predict price actions based on current fundamentals. However, keep in mind that the Ethereum merger will take place in September.
Another important factor to consider is Bitcoin’s performance during the ninth month of the year.
September could be worse than August
Many would like to receive good news about the new month. Unfortunately, previous performance has shown that there may not be any. Since the top currency has become a negotiable good, 12 September has passed.
Of all these periods, BTC came out with gains of only four. It recorded losses of various heights with the lowest of 4.7% and the highest of 45%. The largest increase it has had during the time period is 15%.
On average, the largest cryptocurrency by market cap loses more than 9% every September. By aligning the averages of the previous months, the ninth is the worst. We can conclude that a massive downtrend is almost inevitable.
By stating this statement, we will take a look at last year’s performance. The coin peaked at $ 52k, but is back as low as $ 39k. However, it underwent a buyback and closed at $ 43k, which equates to a drop of more than 7%.
Based on this, we could expect BTC to reach a level it hasn’t reached in a long time. Charts can offer more information on asset performance.
Bitcoin could see a small increase
A closer look at the daily chart shows that the largest cryptocurrency by market cap could see small increases before the price drops sharply. In confirmation of this, we have observed that the Moving Average Convergence Divergence suggests that the asset is experiencing a bullish convergence.
This could herald the start of a short-term uptrend. How long it will last remains to be seen. However, we can conclude that the price increase may start soon. Unfortunately, the histogram associated with the indicator does not agree with the previous statement.
We noticed the same thing about the relative strength index. The metric is currently struggling between 30 and 40. This is cause for concern as a slight increase could result in the asset being oversold. Also, the pivot point standard indicates that BTC is bearish and shows no signs of recovery as it is trading below its pivot point.
Key levels to keep an eye on
Support: $ 19,500, $ 18,000
Resistence: $ 22,000, $ 25,000
Unfortunately, the key levels to watch are not as high as expected. Currently trading above $ 19,000, the most important sign to watch is the support of $ 19,500. We have noticed several barrage attempts. Although most fail, the bulls need to defend their brand as more bearish trends will occur otherwise.
This could result in a retest of $ 18k support. As in this year, the above level has already changed briefly twice. However, after $ 19,000, the next hard barrier is $ 18,000. Failure to comply with this mark could be a road map for $ 15k.
However, in the event of an uptrend, one of the hardest resistances is $ 22,000. Although the brand has seen a fair amount of trial and error, BTC’s current price suggests that more effort may be needed to test it. A successful flip could pave the way for $ 25k.