September ‘Crash’ to $22K? — 5 Things to Know in Bitcoin This Week
Bitcoin (BTC) is currently trading at around $26,000, down from its all-time high of nearly $69,000 in November 2021. Some analysts are predicting that Bitcoin could fall to $22,000 in September, while others believe that the cryptocurrency could rebound and reach new highs.
Here are five things to know about Bitcoin this week:
Possible September crash to $22K
Some analysts are predicting that Bitcoin could fall to $22,000 in September. This is due to a number of factors, including:
- The Federal Reserve is expected to continue raising interest rates in an effort to combat inflation. This could lead to a sell-off in risky assets, such as live cryptocurrency prices.
- The war in Ukraine continues to rage, and there is no end in sight. This is creating uncertainty in the global markets, which could lead to a decline in Bitcoin’s price.
- Bitcoin is still a relatively new asset, and it is highly volatile. This means that its price can fluctuate wildly, and it is susceptible to crashes.
Potential rebound and new highs
Other analysts believe that Bitcoin could rebound and reach new highs in the coming weeks and months. They point to the following factors:
- Institutional adoption of Bitcoin is growing. This is a positive sign for the long-term health of the Bitcoin market.
- Bitcoin is becoming increasingly popular in emerging markets. This is due to a number of factors, including the fact that Bitcoin can be used to send and receive money without the need for a bank account and the fact that it can be used to hedge against inflation.
- Bitcoin has a limited supply of 21 million coins. This means that the supply of Bitcoin cannot be increased, which makes it an attractive asset to investors who are looking for a hedge against inflation.
From a technical analysis perspective, Bitcoin is currently in a bearish downtrend. The price of Bitcoin has broken below a key support level at $28,000 and is now targeting the $26,200 level. If Bitcoin can break below $26,200, it could open the door for a further decline to $25,500 and $25K.
However, if Bitcoin can rebound and break above the $28,000 resistance level, it could open the door for a further rally to $30,000 and $35,000.
On-chain analysis is the study of Bitcoin transactions that are recorded on the blockchain. On-chain analysts can use this data to identify trends and patterns in the Bitcoin market.
One on-chain metric that is worth watching is the number of active addresses. The number of active addresses has been declining in recent months, which is a bearish sign. However, if the number of active addresses begins to increase, it could be a sign that Bitcoin is bottoming out.
Another on-chain metric that is worth crypto market today is the amount of Bitcoin held by long-term holders (LTHs). LTHs are investors who have held their Bitcoin for more than six months. The amount of Bitcoin held by LTHs has been increasing in recent months, which is a bullish sign.
Bitcoin news and developments
There are a number of Bitcoin news and developments that investors should be aware of this week.
- El Salvador’s Bitcoin experiment: El Salvador became the first country in the world to adopt Bitcoin as legal tender in September 2021. However, the experiment has so far been unsuccessful. The price of Bitcoin has fallen significantly since El Salvador adopted it, and many Salvadorans are unhappy with the decision.
- US Federal Reserve interest rate hike: The US Federal Reserve is expected to raise interest rates by 0.75% on September 21, 2023. This could lead to a sell-off in risky assets, such as Bitcoin.
- Bitcoin Core 23.0 release: The Bitcoin Core 23.0 software update is scheduled to be released on September 26, 2023. This update includes a number of new features and improvements, such as support for Taproot and Schnorr signatures.
Bitcoin is a highly volatile asset with the potential for both high rewards and high risks. Investors should carefully consider their risk tolerance before investing in Bitcoin and should have a trading plan in place.