The biggest cryptocurrency is struggling as the US dollar rises and risk assets suffer across the board in the global economy. With BTC/USD down 6.2% from the beginning of the month, September is suddenly living up to its slang name in the cryptocurrency market, “Septembear,” after a strong start. The bad news just keeps on coming for hodlers, who are holding onto idle coins in an increasing number as the dollar rises and the general public’s propensity to diversify into riskier plays continues to decline.
Macro is anticipated to continue to be everyone’s primary emphasis this week. Here, we look at potential implications of Bitcoin’s price change. Given economic conditions that rival any important period of historical upheaval observed in the last century or more, here are some factors to take into account when assessing where Bitcoin might go next.
On the weekly closing, BTC/USD moves back to November 2020.
Data from Cointelegraph Markets Pro and TradingView show that despite the past week’s efforts, Bitcoin has only managed to settle at its lowest weekly level since November 2020 (3.1% decline versus 11% decline).As the downside pressure increases, Bitcoin has therefore returned to the period prior to the innovation that gave it the boost beyond its previous halving cycle’s all-time high.
The overwhelming majority of the items that the average hodler purchased and cold-stored over the preceding two years are now underwater, so they dislike the déjà vu sense it causes. After the market closed, well-known Twitter analyst SB Investments said: “Looks bearish with equities likely to breach support as well. The lowest weekly finish in this zone was just attained by $BTC. However, everyone is prepared for this.
The question of whether the markets might execute a quick “max pain” move to the upside, erasing the short bias, is a key counterargument for proponents of bitcoin. Even for renowned trader Omz, the weekly close price of $18,800 represents a solid local bottom. The RSI divergence in other markets has not gone unnoticed; trader JACKIS predicted it last week.They have always indicated the exact bottom as well, he tweeted at the time. In the past, the oversold territory has only been touched twice. Early November brings the U.S. midterm elections, and fellow trading account IncomeSharks kept predicting a reversal but held off on saying that the bottom had been achieved.
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