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After dropping to the $26,000 level, the price of Bitcoin is once again testing $26,500. But is the drop over? The past two months have been particularly painful for cryptocurrency investors, with losses in altcoins reaching significant levels. Some altcoins that experienced a silent and stable decline during this period have reached new all-time low levels.
Will Cryptocurrencies Drop Again?
Bitcoin bulls have been unable to keep the price above $30,000. Time is running out for the halving. Approximately 7 months from now, the block reward halving will take place, but BTC price has yet to generate a stable wave of demand.
From a technical standpoint, the price of BTC has balanced around the 0.236 Fib line of the Fibonacci retracement graph, pulled back from the ATH to the November low. This sideways movement is reminiscent of what was seen in 2018. The king cryptocurrency had stalled at the $6,790 level before dropping to $3,000 at that time.
The price of Bitcoin is already repeating 2018 with its flattened price around the 0.236 Fib line. A break from this level would mean that the BTC price could drop to $21,500, the next major support level, with a 17.75% decrease from current levels.
On the other hand, the DXY has climbed back to its November 2022 levels. After the interest rate decision on September 20, the rise of the dollar accelerated, and it took its place as the 11th consecutive weekly green candle. As a result, in the short and medium term, it seems that Bitcoin will continue to decline for cryptocurrencies in a broader context.
Cryptocurrency Market Analysis
The Coin Day Destroyed (CDD) metric started to increase 9 days ago. This increase indicates that long-term investors have been moving their BTC assets for potential sales. It can be said that the strong sales resistance in the resistance zone is not surprising, considering the increased entries to exchanges.
Although the entries into exchanges are remarkable, net outflows continue in the long term. The fact that investors are steadily moving their assets from exchanges means that there is less BTC to be sold. However, the problem is that even with tens of thousands of BTC outflows, the price can drop significantly due to a few thousand BTC sent for sale. This is because the volumes are weak and most of the BTC transferred from exchanges are not recently acquired assets.
A crypto commentator known as Skew is relatively optimistic. According to him, after the liquidity in the $27,000 region is absorbed, the BTC price will reach $30,000 in early October.
Another analyst, Rekt Capital, based his prediction on a fractal before the halving and is targeting the $18,000 level. The analyst expects this move within the next 140 days.
