Following the US Securities and Exchange Commission’s decision to postpone its ruling on Bitcoin ETFs to October, the price of Bitcoin has come under pressure. Legendary trader Peter Brandt and popular analysts Michael van de Poppe, CredibleCrypto, and Rekt Capital, among other top analysts and traders, have predicted that the BTC price will continue to correct down to $24,800 before a possible recovery. However, bear market concerns in September have once again renewed speculation about a further correction.
In August, BTC experienced an 18% drop in price, with the SEC delaying its decision on Bitcoin ETFs, giving the first sign of a market decline in the crypto market on the first day of September. Historically, September has been a weak month for risky assets.
Popular analyst Michael van de Poppe shared that the last time Bitcoin had a green September was in 2016. Since then, Bitcoin has lost between 5-8% throughout the month. This implies that the BTC price could drop to $23,000 to $24,000.
However, it continues to maintain its upward trend for a major rally in the fourth quarter and predicts support levels at $24,700 to $25,200 as potential entry points. Additionally, the halving of Bitcoin could become a buying factor.
If this is lost, we lose the structure and target deeper, at $23,000 to $23,500, or even $20,000. As we approach the significant year of 2024, this could be your last dip to buy.
CredibleCrypto stated that the primary cause of the Bitcoin price drop is not spot holders selling their BTC, but rather large forced liquidations. It mentioned that the total open interest shows that there are not many traders left to liquidate, indicating a limited downside.
Typically, after the total OI fell below the $7 billion level in the past 12 months, purchases were made. Bitcoin open positions are currently at $7.5 billion, down from $11 billion before the recent major sell-off. Therefore, there is a possibility of a limited downside for the Bitcoin price after it drops below $24,800.
The delay of Bitcoin ETFs has caused many people to exit the market amid increasing weakness. Bears still have the overall technical advantage, and new lower levels will create a downward breakout. Meanwhile, the US dollar index (DXY) has risen above 104 after PCE inflation and employment data. This could put pressure on Bitcoin’s upward movement.
The BTC price is currently trading at $25,800 with a 1% decrease in the last 24 hours. The lowest and highest levels in the past 24 hours were $25,362 and $26,125, respectively. Additionally, trading volume has decreased in the past 24 hours, which could indicate a decrease in trader interest.