In the early hours of September, Bitcoin, the largest cryptocurrency by market capitalization, experienced a 4.60% decline, dropping to $25,998. All major cryptocurrencies faced losses of up to 7% on the first day of the month. Within the past 24 hours, cryptocurrency liquidations reached a total of $129 million.
The decline comes as investors continue to sell off risky assets amid rising inflation and interest rates. Read on to know more.
September Has Been Unkind!
Historically, September has not been favorable for Bitcoin and other assets, with negative returns observed for six consecutive years since 2016. However, past performance is not always indicative of future results, so it is impossible to say for sure what will happen to Bitcoin in September 2023.
Traders should monitor potential positive catalysts that could influence the Bitcoin price in the coming weeks.
What Caused the Drop?
While Bitcoin was expected to go higher, it plunged to $25,548 from a recent high of $28,184 due to waning excitement over Grayscale news. The second catalyst is the SEC’s decision to delay Bitcoin spot ETF applications led to a significant $2,500 loss, marked by two consecutive days of red candles on August 30 and 31.
The SEC postponed filings from Bitwise, VanEck, Invesco, Valkyrie, and BlackRock, granting a 45-day extension to approve or reject six ETF proposals, citing the need for more evaluation time.
Read More: SEC Chair Predicts Approval of Bitcoin ETF is Inevitable!
BTC to Nosedive at $23,000?
The current market conditions do not favor Bitcoin’s price. It experienced a 4.41% decline in the last 24 hours, settling at $25,843. This decline suggests a potential further drop as it approaches the lower end of its trading range. The question arises: Is a Bitcoin Bottom possible?
Showing his concern, Crypto analyst Ali said Bitcoin’s lack of support is just below its current level. He further cites Glassnode’s UTXO realized price distribution metric as well to reveal the current BTC position.
According to Ali, on-chain data suggests that Bitcoin may struggle below $25,400 and could potentially drop to $23,340 if this support level is breached. September historically hasn’t favored Bitcoin bulls, but a move above $25,400 would be their goal to initiate a new rally aiming for $28,500.
Also Read: Crypto Market Prediction For September: What’s In Store For Bitcoin Price
What are your predictions for the price of Bitcoin in September?
Source: https://coinpedia.org/price-analysis/bitcoin-btc-price-might-drop-to-23k-in-coming-week-if-this-happens/