Bitcoin Price Analysis August Week 4
Bitcoin is now trading between $20,020.94 and $21,804.91. However, the 1st cryptocurrency has long been witnessing a downfall and could go through such hindrances in the future as well. It seems that the recovery of token’s losses in June (at $17,500) was just a short episode that came and gone leaving no chance for such a possibility in the coming days. At present, BTC is moving toward an extremely uncertain month in the coming days.
September Haunts Bitcoin Market Once again
The former data regarding the primary crypto token indicates that the period from 2013 to 2021 witnessed September to be the most horrible month except for the years 2015 as well as 2016. Simultaneously, approximately -6% is the average price decline of Bitcoin. It is noticeable that the weak progression of BTC’s track record during the former September corresponds with similar declines within the market. For example, the usual downturn of the prominent benchmark of the United States – S&P 500 – has been 0.7% in September during the previous 25 years.
The conventional analysts of charts have devised the term “September effect” to denote the respective annual collapse. As per the analysts, the market positions are emptied by the investors following their return in September from the summer vacations to lock profits, or tax losses, before the closure of the year. In the meantime, they additionally revealed that the assets are liquidated by the individuals in September for the payment of the annual school dues of their children.
BTC to Dive down to nearly $19,000 by the Next Month
During this year, the losses of Bitcoin were caused by the fears of the rate hike of the Federal Reserve as well as the full unwinding of its strategy of purchasing a monthly bond of $120B to deal with the mounting inflation. In the case of the index of fear and greed sentiments around Bitcoin, the token’s performance could not cross the 30% mark on the gauge. The present percentage of 28 is considerably low and signifies that the sentiment of fear is dominating the market currently.
Looking at it from a technical viewpoint, BTC may even fall near $19,000 by the next month if its present bearish pattern is broken. Generally, September appears to be another month for bloodshot while keeping in view the technical and broader aspects of Bitcoin’s market progress.
