This year, Bitcoin hasn’t been without its share of ups and downs and there have been multiple drops. However, according to an analyst, an interesting pattern is emerging. Going back to the 2014-2018 cycle, history shows that during the same week as now, a big price correction occurred, hitting the exact same mark as the 200-week Exponential Moving Average (EMA). Strangely, this time around, the correction has landed Bitcoin right on that 200-week EMA mark again.
Taking to his Twitter handle, Michael Van De Poppe asked the burning question ‘Did Bitcoin bottom on this correction or are we expecting $20K?’ He explained that if this question had been raised before the tumble, one would likely have received a more positive response.
He wrote, “Bitcoin has been facing multiple 20%+ corrections during this year and has got seasonality within it. During the 2014-2018 cycle, a deep correction took place in the exact same week. It dropped to the exact same level, which is the 200-Week EMA.”
But now, fear has crept back into the market, and sentiments are decidedly bearish. The Fear & Greed index, which gauges market sentiment, is at 38 – similar to what was seen during the challenging times of March ’23, when a 22% dip pushed the index to 33.
“If we’re looking at recent news data and upcoming events, there are a few important ones to monitor: – Unemployment & PMI next week for the U.S. – CPI on September 13th. – FOMC on September the 20th,” the analyst highlighted.
Interestingly, Van de Poppe isn’t overly concerned about the current focus on Binance, likening it to the Tether worries of 2018. Overall, Van de Poppe leans towards a positive outlook for the correction’s end, given the significant shift in sentiment.
Source: https://coinpedia.org/bitcoin/will-bitcoin-btc-price-hit-20k-in-september-heres-what-next/