The global cryptocurrency market cap is currently $1.04 trillion, showing a slight gain of 0.27% since yesterday. However, trading volume has fallen significantly, down 44% to $18.92 billion.
However, the king crypto Bitcoin (BTC), saw a notable drop from $28,176 to $25,451, marking a 9.8% loss. Interestingly, demand for Bitcoin seemed to pick up around the $25,500 level, as seen in the daily chart’s lower price rejection candle.
Prepare for a Rollercoaster Ride!
Historically, September has been a challenging month for Bitcoin, and this year is no exception, warns analyst Miles Deutscher. The cryptocurrency market, including Bitcoin and major altcoins, faces turbulence due to factors such as regulatory scrutiny of major exchanges like Binance and Coinbase, SEC interference, and significant token unlocks.
Deutscher’s analysis highlights a “significant supply overhang” in September 2023, exacerbated by delays in Bitcoin ETF decisions. This could pose challenges for Bitcoin enthusiasts.
Token Unlocks
Despite the bear market, traders should prepare for the release of Bitcoin and various altcoins previously held by the now-defunct FTX exchange, as mandated by U.S. authorities. Additionally, September is set to witness numerous substantial token unlocks, including Apecoin (APE), Aptos (APT), dYdX (DYDX), and Optimism (OP).
Read More: Crypto Market Analysis: What’s In Store For Bitcoin and Altcoins in September
These “sell walls” on major altcoin pairs could have a more pronounced impact in the fourth quarter when trading activity tends to slow down. Deutscher believes that renewed market interest, possibly through the growth of ETFs, could help mitigate these challenges.
Additionally, the short-lived Bitcoin price surge after Grayscale’s legal win shows the market is bored. Despite the initial hype, Bitcoin quickly fell back to levels from mid-June and couldn’t break the $30,000 barrier.
Will September Reverse its Curse This Year?
Deutscher advises Bitcoin enthusiasts to closely monitor two macroeconomic triggers: the release of the Consumer Price Index (CPI) on September 13 and the Federal Open Market Committee (FOMC) meeting scheduled for September 20. These events have the potential to influence Bitcoin and major altcoin prices.
While Deutscher foresees interest from buyers aiming to accumulate Bitcoin around $25,000 and $23,000 levels, he remains cautious and acknowledges the possibility of even lower prices. As of the time of writing, Bitcoin is trading at approximately $25,833 on major exchanges.
Also Read: Bitcoin Price Might Drop to $23K in September, Is a Bottom in Sight?
Source: https://coinpedia.org/bitcoin/bitcoin-btcprice-might-drop-below-23k-in-september-keep-an-eye-on-these-2-key-dates/