Bitcoin (BTC) kicked off the week on a low note. It’s currently trading around $58,000 after briefly hitting over $60,000. Analysts are sounding the alarm. They warn that things might get worse before they get better. There’s a reversal zone that could shake up the price. Plus, the crypto markets are gearing up for some big events this month, which could ramp up Bitcoin's volatility.
Researchers at QCP Capital are predicting a further correction for Bitcoin. They believe it will find solid support around the $54,000 mark. This comes after Bitcoin ended the last month down by 8.6%, largely due to the recent crash of the Bank of Japan (BOJ). Historically, September hasn’t been kind to Bitcoin, with an average drop of about 4.5%. It’s looking like a potential dip to around $55,000 is on the horizon.
Data from Coinglass shows that Bitcoin has struggled in September for years, averaging a return of -4.78% since 2013. The third quarter (Q3) is usually tough for both Bitcoin and the broader crypto market. Investors tend to be cautious during this time. This is reflected in the disappointing performance of Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). A recent report from CryptoQuant highlights fewer stablecoin inflows, indicating that investors are nervous and think the downtrend might continue.
On the flip side, popular trader Daan Crypto Trades sees a chance for a short-term bounce. He points out a new CME Gap at around $59,000. He also mentions last week’s gap is still partially open. “A new CME Gap was created this weekend at about $59,000. Last week’s gap is also still partially open, but the price did close most of it during that move to $61,000,” he explained. CME gaps happen when Bitcoin’s price on the Chicago Mercantile Exchange (CME) differs between the market's close and its reopening after a weekend or holiday. These gaps often get filled as prices tend to return to the gap level.
In the midst of all this market activity, Bitcoin whales are adjusting their portfolios. For instance, one whale withdrew 1,100 BTC from Binance, while another added 1,000 BTC to their holdings.
Avinash Shekhar, co-founder of Pi42, expects more fluctuations ahead, especially with key U.S. economic events on the horizon. He notes that a strong employment report for September could dampen hopes for easier monetary policy. “A strong September U.S. employment report could temper expectations for easier monetary policy, potentially leading to more market volatility. However, there’s also a 50% chance of an upward trend,” Shekhar shared.
As of now, Bitcoin is trading at $58,391, down 0.31% in the last 24 hours.