Bitcoin is currently maintaining a strong degree of support. It's close to the $25,000 mark.
As September unfolds, Bitcoin (BTC) finds itself ensnared in a consolidation phase, struggling to mount a significant rally. Market analysts, drawing from historical patterns, are painting a sombre picture of Bitcoin's prospects this month.
Cryptocurrency expert Michaël van de Poppe noted on September 7 that Bitcoin is facing a potentially turbulent month, labelling it a 'month of destruction.' Despite holding a critical support level at around $25,500, Bitcoin is treading on thin ice, resting on the 200-week MA.
Analyzing the historical cyclical nature of the cryptocurrency markets, Poppe pointed out recurring trends. In pre-halving years, specifically August and September, tend to be turbulent for Bitcoin. This pattern, consistent over the years, suggests an inherent cyclicality to Bitcoin's performance.
Poppe drew striking parallels between the current market and the 2015 cycle, emphasizing the influx of new participants, particularly institutional investors, into the cryptocurrency realm. This new dynamic adds complexity to predicting Bitcoin's price movements.
The potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) is poised to catalyze increased institutional involvement, potentially altering the landscape of Bitcoin's performance.
Despite lagging prices, the Bitcoin network displays signs of vitality. On-chain analytics firm IntoTheBlock reported a 38% surge in Bitcoin network fees for the week, coinciding with a significant uptick in Ordinals inscriptions.
However, Bitcoin's price action remains subdued, struggling to surpass the $26,000 mark. Bulls face a challenging task in regaining lost ground after a substantial sell-off in the previous week.
As per CoinStats, Bitcoin is currently trading at $25,902.6, up 0.10% in the previous 24 hours, with a market size of $505 billion. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $6B.
On September 7, Bitcoin surpassed the 20-day exponential moving average (EMA) of $26,419, but the bulls were unable to breach this barrier. This indicates that the bears are vigilantly defending the 20-day EMA.
However, the failure of the bears to test the critical support level of $24,800 shows that selling has ceased at lower levels. The relative strength index (RSI) is attempting to establish a positive divergence, which indicates that the negative momentum is fading.
The first indication of strength will be a break and closing above the 20-day moving average. This paves the way for a prolonged rebound to $28,143. On the other hand, if the $24,800 support falls, the BTC may begin to fall.
The narratives surrounding Bitcoin in September are intertwined with its historical performance, institutional influence, and network vitality. The cautionary notes from analysts like Poppe serve as a reminder of the dynamic nature of cryptocurrency markets.
While the challenges are evident, Bitcoin's resilience and the growing interest in its network demonstrate a sustained trust in its potential. The coming weeks will undoubtedly be a crucial period for Bitcoin, shaping its trajectory for the foreseeable future.