September has historically been a bearish month for Bitcoin and the rest of the crypto market. In 2021, Bitcoin’s divergence from expected market trends had raised hopes that it would break the September curse, but unfortunately, it followed it to a T. Because of this, there are expectations that BTC’s price will trade with the already The new month ushered in will continue to fall and likely hit lower trends as it enters the worst of the bear market.
Analyst Says Brace for Impact
One of those who referenced the September curse in their analysis of Bitcoin price is Scott Redler, the chief strategist at T3 Trading Group. Redler released a Bitcoin chart outlining the digital asset’s movement since last year and highlighting key technical points that had sparked a downtrend in its price.
A key level that has been worked out by BTC lately is $17,600. This represents the new local low after the cryptocurrency set a new record and fell below its previous cycle peak. Now $17,600 has become the level that bulls need to hold to avoid another decline.
Redler’s chart shows that if the digital asset fails to sustain above that level, the next support lies around $13,500. But even more interesting is the fact that below $13,500 the next possible point is the dreaded $10,200.
BTC price fails to hold $20,000 | Source: BTCUSD on TradingView.com
The strategist explains that the month will determine where the price of BTC ends up after. However, if the bulls are able to sustain above this level, which ultimately serves as a jumping point, then BTC’s next major level is just above $25,000.
Will Bitcoin Suffer This Month?
Bitcoin is an asset that has always closely followed historical trends. Even after it broke out of established trends in 2021, it still held close to others. One of them was the infamous “September curse”. For anyone who doesn’t understand what that is, the term was coined because Bitcoin’s price has consistently declined this month.
Last year was no different in this regard, even though the crypto market is deep in a bull market. Bitcoin started September 2021 at around $53,000 but lost more than $10,000 of its value by the end of the month. This is despite notable adoption, such as El Salvador officially accepting cryptocurrency as a digital asset, and Cardano finally rolling out smart contract capability.
With this in mind, it’s possible that Bitcoin is sticking with this trend. The digital asset is already showing signs of decline, starting the month above $20,000 and already falling below this key technical level. If BTC fares as it did in 2021, the price is likely to fall to around $16,000, which would account for around 20%, in line with previous downtrends.
Featured image from Analytics Insight, chart from TradingView.com
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