Bitcoin price is squeezing hard. After remaining under narrow consolidation throughout August, it was believed that September 2023 may be diverse. Woefully, the price started the month’s trade on a bearish note, squashing the possibilities of a fresh bullish reversal. Moreover, the current trade setup indicates that the price may undergo extremely dreadful days until the end of September.
In such cases, market participants need to consider the following points before carrying out any trade,
September Tends to be negative, as the price began the month on a bearish note. Historically, the price has witnessed a single-digit drawdown in September, while only two months (2015 & 2016) saw small, single-digit gains.
Bitcoin prices retraced an average of 7% to 8% in September 2017, 2020 and 2021
In the case of a double-digit retracement, which happened in 2019 and 2014 with 13% and 19%, then the bear markets may go deep. The current bear market can be compared to 2019 as the rally displays similar price action.
Chances for a massive crash rally are unlikely, as the historical BTC chart indicates that the price has never recorded consecutive double-digit bearish months. It has to be noted that August has already registered a 13.5% loss, and hence, such a steep plunge may not be followed this month.
The BTC price may retrace between 7% and 13%, which appears to be reasonable, dragging the price between $22,500 and $24,000.
Collectively, the Bitcoin price is displaying perseverance in times when the markets appear to have been choked. However, the slightest chance of a bullish rebound could revive hopes for a positive month ahead. But the historical price action suggests the BTC price could drop below $24,000 before triggering a fresh bullish wave.
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