As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I’ve learned to navigate the market’s ebb and flow like a veteran sailor riding the waves. The recent dip in Bitcoin price to $57,500 is reminiscent of a familiar dance we’ve seen before – the September tango that often leaves us with a slight sense of deja vu.
Over the past day, Bitcoin‘s price has declined an extra 1.62%, falling to around $57,500, furthering its weekly losses beyond 10.5%. As anticipated, the month of September, known for being bearish in Bitcoin and crypto markets, is following this historical pattern.
Bitcoin Price Drops As Capital Flows Move to Stablecoins
Following a setback at $65,000 last week, Bitcoin’s price has been on a downward trend. This could be due to decreased investment in Bitcoin compared to stablecoins, suggesting a significant caution for the future. The increase of funds moving into stablecoins indicates a decrease in investor confidence and uncertainty about Bitcoin in the short term. However, this might lead them to seize potential price drops in Bitcoin in the future. On the contrary, the market capitalization of stablecoins has also spiked, nearing its all-time high at approximately $170 billion.
crypto expert Ali Martinez has noticed a significant decrease in on-chain activities related to exchanges, as indicated by the Exchange Volume Momentum index. This continuous downturn in on-chain activity suggests a decrease in investors’ enthusiasm for Bitcoin and a concurrent reduction in the network’s overall usage.
For a while now, the price of Bitcoin has made multiple comebacks in a ‘V’ shape following its drops in May, July, and August. Yet, there’s been a gradual deterioration in the overall market structure and its underlying foundations.
From my perspective as a crypto investor, it seems that each dip in Bitcoin’s price has been getting deeper, and the subsequent recoveries have been less strong. This trend suggests that we might be nearing a crucial turning point in September. If this happens, there could be a decrease in demand, potentially leading to further declines.
BTC Loses Critical Support Levels
For the past ten years, September has typically seen significant market consolidation or a downturn, with an average decline ranging from 5% to 10%.
crypto expert Rekt Capital pointed out that Bitcoin is approaching the end of its weekly price period and is currently trading below important support at approximately $58,540. If the week ends with Bitcoin trading under this level, it could lead to additional price declines. To maintain its upward trend, Bitcoin needs to close above $59,000, but given the current prices, this seems improbable.
#BTC
Bitcoin is mere hours away from its Weekly Candle Close
To maintain the channel bottom and establish it as a source of support, Bitcoin should aim to close the weekly session above approximately $58,450.
Price is at this support right now
Ideal close would even be ~$59000 to get BTC above the blue…
— Rekt Capital (@rektcapital) September 1, 2024
Additionally, the upcoming U.S. employment figures, due before this coming week, will play a significant role in shaping the Federal Reserve’s decision regarding interest rate reductions in September.
Right now, Bitcoin is holding steady within its robust accumulation phase. As per Rekt Capital’s analysis, traditionally, the price of Bitcoin has spiked 150-160 days following the Bitcoin halving event. Considering a similar pattern this time around, we might not witness the breakout until late September.
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2024-09-02 08:24