Bitcoin provided a negative return of 7.50% though September
Despite the growing concerns over the so-called “September Effect,” Bitcoin kicked off the month with a bang. The flagship cryptocurrency opened on September 1st trading at a low of $11,612.55 and quickly rose to a high of $12,086. The 4% upswing was quite encouraging as it defied all the FUD that was being spread about September.
Moreover, Bitcoin’s stock-to-flow model also suggested that prices were going to close the month above $18,000, leading investors to pull the trigger and re-enter long positions. What came next was an 18.81% correction that saw the pioneer cryptocurrency plummet to a low of $9,813 within five days. More than $2.6 billion worth of long and short BTC positions were liquidated across the board during the sudden downturn.
Bitcoin was able to recover some of the losses incurred as it rose to a high of $10,440.91 on September 8th. But later that day, it pulled back to retest the $9,800 support barrier. This time around, however, a significant number of buy orders were filled around this price level, allowing prices to rebound strongly.
By September 19th, at 12:00 UTC, the bellwether cryptocurrency had risen nearly 14% to make a high of $11,179.90. Although many market participants thought that BTC was poised to advance further, the bears were able to get back control of the price action. As sell orders began to pile up across multiple cryptocurrency exchanges, Bitcoin was forced to retrace more than 9%, nearing the psychological support around $10,000 on September 23rd.
The buying pressure behind Bitcoin rose from the grave throughout the last week of the month, allowing it to recover some of the gains lost. The spike in demand led to a 6.36% upswing that saw BTC close at a high of $10,779.63. As a result, investors incurred a monthly loss of more than 7.50%, adding another rough September to the books.
On the cusp of resuming the bull run
When looking at Bitcoin’s network activity, everything seems to point out that the uptrend is about to resume. The number of addresses holding 10,000 to 100,000 BTC continues rising, which is a clear sign of mounting buying pressure. Over the past two weeks, roughly seven whales have joined the network, which translates into billions of dollars’ worth of buy orders.
The technical aspects of BTC also look bullish. On the 3-day chart, the pioneer cryptocurrency seems to have bounced off the 50-three-day moving average, which has served as strong support during the last three multi-year bull runs. If history repeats itself, the recent rejection from this support level may have the strength to push Bitcoin towards $12,500 or new yearly highs.
Given the high probability of a further advance, investors must pay close attention to the $10,000 support wall. If this price hurdle fails to hold, Bitcoin’s bullish outlook could be jeopardized. Under such circumstances, the next critical support level to watch sits around $9,000.
The above content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. The trading of commodities, cryptocurrencies and currencies involves significant risk. Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose the value of your assets at any given moment. A cryptocurrency/currency may be subject to large swings in value and may even become absolutely worthless. There is always an inherent risk that losses will occur as a result of buying, selling or trading anything on the market. Cryptocurrency trading has specific risks, which are not shared with other official currencies, goods or commodities in a market. Every user has to carefully assess whether his/her financial situation and tolerance for risk is suitable for buying/selling/trading cryptocurrency.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.