Bitcoin Price Analysis: Welcome to BTC Worst Performing Month

The hype surrounding Bitcoin is no doubt reducing as the coin fails to meet traders expectations. It closed the previous month with more deficits after sparking a hint of hope that there would be more uptrends two months ago. The largest cryptocurrency by market cap gained more than 17% as it climbed from $19k to a close at $23k. 

The past 30 days have been a complete opposite as we observed the price change. This time, BTC dipped from the previous close to the opening price ($23k-$19k). It is safe to conclude that it eliminated every trace of an uptrend. However, price performance mirrors the predictions in a previous outlook.

The analysis affirmed that August was not one of the apex coin best months and it may face more downtrends. It also laid out some key levels and predicted that the $20,500 support will flip. Price actions at this time proved this true as we observed the closing price. 

Nonetheless, there were both positive and negative stories around the coin during the previous month. One such is the announcement that a Bitcoin ATM vendor’s share will soon go public. One dormant wallet for the past nine years became active with $96 million profit. Unfortunately, CFTC charges man for allegedly running $12M ponzi scheme

Following the consistent price decrease, many traders will look forward to better performance this month. Will they get it? Let’s examine some factors

Conflicting Fundamentals

The consistent drop in the value of the top coin paints the entire crypto market in a bad light. A previous survey deduced that noobies are getting less interested in almost all of these assets, especially BTC. 

However, more entities stepping up their interest in the cryptocurrency. One such is Armenia. The nation is taking advantage of some factors and wants to position itself as the largest BTC hub in the world. 

The United States is also seeing a rise in adoptions as more companies paid their workers in bitcoin at the end of the previous month. It is safe to say it is hard to predict price actions based on the current fundamentals. However, bear in mind Ethereum merger will take place this September. 

Another important factor to take note of is Bitcoin performance during the ninth month of the year. 

September May be Worse Than August

Many would love to hear good news about the new month. Unfortunately, the previous performance showed that there may be none. Since the apex coin became a tradable asset, twelve September have passed. 

Of all these periods, BTC came out with gains of only four. It recorded losses of varying heights with the lowest being 4.7% and the highest, 45%. The biggest increase it had during the timeframe under consideration is 15%. 

On average, the largest cryptocurrency by market cap loses more than 9% every September. Lining up the averages on previous months, the ninth is the worst performing one. We may conclude that a massive downtrend is almost inevitable. 

Affirming this claim, we will take a look at last year’s performance. The coin peaked at $52k but retraced as low as $39k. However, it experienced buyback and closed at $43k which equates to a more than 7% drop. 

Based on this, we may expect BTC to hit a level that it hasn’t in a long while. The charts may offer more insights into how the asset may perform. 

Bitcoin May See a Little Increase

A closer look at the daily chart shows that the largest cryptocurrency by market cap may see small increases before the major drop in price. Confirming this, we observed that the Moving Average Convergence Divergence  hints at the asset experiencing a bullish convergence. 

This may herald the start of a short term uptrend. It remains to be seen how long it will last. However, we may conclude that the price increase may start soon. Unfortunately, the histogram associated with the indicator is  not in agreement with the previous statement. 

We noticed the same thing on the Relative Strength Index. The metric is currently struggling between 30 and 40. This is a source of concern as a slight increase may result in the asset becoming oversold. Additionally, the pivot point standard indicates BTC is bearish and is showing no signs of recovering as it is trading below its pivot point. 

Key Levels to Watch

Support: $19,500, $18,000

Resistance: $22,000, $25,000

Unfortunately, the key levels to watch are not as high as expected. Currently trading above $19k, the most important mark to keep an eye on is the $19.5k support. We noticed several attempts at the barrier. While most fail, the bulls must defend their mark as failure to do so will result in more downtrends. 

This may result in a retest of the $18k support. As at this year, the said level briefly flipped twice already. Nonetheless, after $19k, the next tough barrier is $18,000. Failure to hold this mark may be a road map to $15k. 

However, in the event of an uptrend, one of the toughest resistance is $22k. Although the mark has seen a fair share of attempts and flips, BTC’s current price suggests that it may take more effort to test it. A successful flip may clear the path to $25k. 

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  • bitcoinBitcoin (BTC) $ 19,518.71 0.13%
  • ethereumEthereum (ETH) $ 1,342.28 0.73%
  • bnbBNB (BNB) $ 283.50 1.26%
  • xrpXRP (XRP) $ 0.437729 0.98%
  • solanaSolana (SOL) $ 34.21 3.19%
  • terra-luna-2Terra (LUNA) $ 2.47 1.87%