After a volatile August, more turbulence may be in store for Bitcoin price in September. Speaking of September, analysts at QCP Capital believe that Bitcoin can find support at $54k during a bearish period. This prediction is based on what appears to be a norm in the market, given that the prices of this virtual currency have not been up to par during this month. A digital asset trading firm and its partner predict that the cryptocurrency may further fall by 5% in September, following the 4% plunge in August.
Historical Trends Point to a Bearish September
Historically, Bitcoin, aka ‘digital gold,’ has had a poor September track record: BTC has been in the red for six of the last seven Septembers. The average losses have been 4.5 percent of the total mining industry, based on information sourced from QCP Capital. This bearish trend might extend into this year, and consequently, result in lower price levels. However, QCP Capital signals that this movement could open up a chance for setting a stable Bitcoin price at around $54,000.
In a recent report, QCP Capital made a more detailed analysis: “The $54,000 level is crucial.” “It is the same level where it used to trade before ramping up to a $70,000 price in July. If Bitcoin holds this level, then a potential rebound may be on the cards.” As of September 2, the price of Bitcoin was $58,000, a nearly 2% increase after a small market recovery. It is possible that this is just a rebound, and market conditions continue to be volatile.
Federal Reserve’s Influence on Bitcoin Price
As for BTC, $54k might be the support level during the bearish September, but external factors also matter. The first obvious variable is the overall U.S. Federal Reserve monetary policy. Earlier this August, during the Jackson Hole symposium, Fed Chairman Jerome Powell suggested that there could be rate cuts soon. This has led analysts to think that rates could be cut by 25 to 50 basis points later in the current month.
Finally, one could suggest a shift in the monetary policy that could lead to a significant effect on Bitcoin’s price. Last time we interviewed Philipp Zentner, the chief executive officer of (link unavailable), he explained the potential effects via email: “A pivot by the Fed could prove to be a boon for Bitcoin.
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Rate cuts are normally accompanied by improvements in the availability of capital in the markets, which in turn can give the green light to the leading digital asset like Bitcoin.” Zentner also discussed further expansion of the btc/dollar pair, declining crypto balances at exchanges, and the inflow of bitcoins from miners as favorable factors. Such manifestations indicate that as far as there could be a bearish September, the stage is being set for a cumulative positive move.
Market Indicators Signal Mixed Sentiments
Another recent trend indicates a somewhat unclear state of the cryptocurrency market. The current figure shows that Bitcoin’s dominance is at 58%, meaning that investors are giving Bitcoin preference over other digital currencies, such as Ethereum, which has not performed well. Recent numbers from CoinGlass showed that nearly billions of BTC and other crypto assets have been withdrawn from prominent platforms, such as Binance and Coinbase, in the last month.
This trend may also be evidence that investors are stockpiling the virtual currency, possibly in anticipation of better prices in the future. In June, the Bitcoin and Ethereum exchange balances fell to their lowest level since 2014, indicating that probably fewer coins are being dumped, and this is a rather bullish trend. However, the overall market tone is still bearish, with the Federal Reserve meeting and the potential for a change in interest rates.
Conclusion: A Pivotal Month Ahead
Indeed, the Bitcoin price appears to be in a critical position in the month of September. Based on the historical performance, the price is likely to remain bearish, potentially getting some support at the $54,000-level. However, there is a chance that the Federal Reserve may shift its policy, which will create a chance to rebound for a cryptocurrency. Experts will be following these trends as the outcome in September may further decide the bitcoin’s fate in the remaining time of 2021.
Fundamentally backed with robust supports and a well-capitalized stablecoin market to boot, with theoretical room for favorable monetary outcomes, Bitcoin price is set for quite a rally. During this period, investors are likely to take their bearings on how the market affects the position of Bitcoin. Keep following TheBITJournal and keep an eye on the next Bitcoin price trend and update.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
