Brace Yourselves- Bitcoin Is In For A Nasty September!
Currently, Bitcoin is trading at $19723, having previously hit the $19500 weekly support level. The possibility of a bullish reversal has been increased by the daily candle’s extended tail-rejection, indicating the falling volume.
Can the $20,600 level be reclaimed by the possible bull run? Or are we likely to witness a drop to the fatal $10,000 threshold that Scott Redler foresaw?
T3 Trading Group’s Scott Redler recently stated in a Twitter thread that if the bulls are unable to retain the $17,600 level, Bitcoin may be on the track to fall to the $10,000 point.
Bitcoin Could Crash to $10k?
Bitcoin is presently failing to gather pace and is trading around $19,804 on the Bitstamp exchange.
Redler, in his analysis, mentioned that the many opportunities in the Bitcoin industry could lead to an “exhilarating” September.
He also mentioned that as long as the asset continues trading below the crucial $20,700 barrier, it will experience intense bearish pressure. Despite hopes of a recovery, Bitcoin was actually the worst-performing asset last month, i.e. August.
The cryptocurrency witnessed a significant fall when the U.S. Federal Reserve crushed speculators’ expectations of a more accommodating monetary policy.
Redler even touched upon Ethereum by saying that despite the much-hyped merger upgrade, the price of the altcoin could visit levels below $1,000.
Signs of an upcoming crypto crash
After the massive losses and price drop witnessed by the market participants over just a few months, people seem to have lost their trust in the crypto space and market sentiments are increasingly becoming negative. Despite a tiny increase, BTC is exhibiting all the warning indicators of the largest cryptocurrency crash in history- here’s how.
- The September impact: Bitcoin, according to several traders, will likely end up performing poorly this month. Historically, September has had a bad reputation for Bitcoin and has led to massive price drops.
- Trend Analysis: Since 2013, the biggest cryptocurrency has had a September decrease of 6% on average. In contrast, in 2015 and 2016 only Bitcoin maintained a profit. While in 2014 and 2019, respectively, the price of the most popular cryptocurrency dropped by 19% and 13.4%.
- Fed Rate Hikes: Meanwhile, it looks like the Fed will soon announce a number of additional increases in interest rates. According to traders, the central bank will raise the benchmark rate by an additional 75 basis points in September in order to regulate inflation.
The Bottom Line
In its short history, Bitcoin has persevered through some of the worst economic situations, but still none as unfavourable a fiscal climate as a worldwide recession. Crypto investors are looking for a buy – and – hold opportunity that would entail the stability of the Bitcoin price, but the idea is still extremely improbable given the market’s current conditions.