Bitcoin (BTC) Price Might Drop To $23K In Coming Week If This Happens

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In the opening hours of September, Bitcoin, the largest cryptocurrency by market capitalization, faced a 4.60% drop, falling to $25,998. All major cryptocurrencies experienced losses of up to 7% on the first day of the month. Crypto liquidations in the past 24 hours reached $129 million. 

Start of Bearish September

If you talk about historical trends, September hasn’t been bearish for Bitcoin and other assets, with six consecutive years of negative returns since 2016. However, past performance may not accurately predict current trends, so Bitcoin’s September trajectory remains uncertain. Traders should monitor potential positive catalysts that could influence Bitcoin’s price in the coming weeks.

While Bitcoin was expected to go higher, it plunged to $25,548 from a recent high of $28,184 due to waning excitement over Grayscale news. The second catalyst is the SEC’s decision to delay Bitcoin spot ETF applications led to a significant $2,500 loss, marked by two consecutive days of red candles on August 30 and 31. The SEC postponed filings from Bitwise, VanEck, Invesco, Valkyrie, and BlackRock, granting a 45-day extension to approve or reject six ETF proposals, citing the need for more evaluation time. 

BTC to Nosedive at $23,000? 

The current market is not favorable for Bitcoin’s price. It saw a drop of 4.41% in the last 24 hours, settling at $25,843, indicating a potential further decline as it returns to the lower end of its trading range. Is Bitcoin Bottom possible? 

Showing his concern, Crypto analyst Ali said Bitcoin’s lack of support is just below its current level. He further cites Glassnode’s UTXO realized price distribution metric as well to reveal the current BTC position.

According to Ali, on-chain data suggests that Bitcoin may struggle below $25,400 and could potentially drop to $23,340 if this support level is breached. September historically hasn’t favored Bitcoin bulls, but a move above $25,400 would be their goal to initiate a new rally aiming for $28,500.