As September approaches, Bitcoin (BTC) continues to consolidate and struggles to initiate a crypto rally. Market analysts have painted a troubling picture for Bitcoin’s expectations in September based on historical examples.
In particular, cryptocurrency trader and analyst Michaël van de Poppe highlighted in a recent tweet on September 7th that Bitcoin is potentially facing a turbulent month, referring to it as a “bearish month”.
Bitcoin Price Predictions for September
Van de Poppe’s overall assessment emphasized that Bitcoin is currently fighting to maintain its value above $25,000 and stated:
Bitcoin is currently holding onto a significant support level. This support is around the $25,500 barrier. Meanwhile, we are facing a bearish month. September. Bitcoin is facing a crucial support level that it needs to hold onto, as it is currently standing above the 200 Weekly Moving Average (MA).
Analyzing the historical and cyclical aspects of the cryptocurrency markets, Poppe highlighted some possible trends that could emerge. Poppe observed that August and September tend to be volatile months for Bitcoin before halving events. This pattern has remained consistent over the years, suggesting a cyclical nature in Bitcoin’s performance.
He pointed out that in August 2015, Bitcoin experienced a significant correction by dropping towards the 200-day Exponential Moving Average (EMA). However, it was noteworthy that Bitcoin never closed below this level, indicating flexibility in the cryptocurrency.
Similarly, in 2019, Bitcoin faced significant challenges with a correction in August followed by a smaller drop in November of the same year. This pattern indicates the potential for long-term fluctuations in the cryptocurrency market.
Poppe drew a striking comparison between the current market and the 2015 cycle. Considering the influx of new participants, especially institutional investors, he noted that there could be correlations with the 2015 cycle.
While technical analysis focused on the price movements in 2019 does not provide a clear picture of Bitcoin’s future, the parallels established with the 2015 cycle indicate the need for caution among investors. The increasing involvement of institutional players adds an additional layer of complexity to predicting Bitcoin’s price movements. This has been highlighted by the potential approval of the Bitcoin Exchange Traded Fund (ETF), which is expected to further increase institutional participation in the cryptocurrency arena.
Bitcoin’s Bearish Trend
Senior technical analyst at Kitco News, Jim Wyckoff, mentioned that despite the efforts of bulls to stabilize the price, bears still maintain the upper hand in Bitcoin’s market. He emphasized that Bitcoin remains vulnerable to a long-term price decline.
Bitcoin futures prices for September once again showed a slight decrease in early trading in the US. There is nothing new towards the end of this week. Bulls are working to balance the prices, but bears still generally have a short-term technical advantage. The daily chart still shows a downtrend line, indicating lower price movements in the near term.
Currently, Bitcoin is trading at $25,873 and is struggling to surpass $26,000.
