September was a historically bearish month for bitcoin and the rest of the cryptocurrency market by extension. In 2021, Bitcoin’s deviation from expected market trends sparked hope that it would break the September curse, but unfortunately, it followed it to a T. Which is why with the new month already entering, there are expectations that the price of BTC will continue to dive and potentially hit lower trends. With its entry into the worst bear market.
Analyst says he’s preparing for impact
One of those who referred to the September curse in their analysis of the price of bitcoin is Scott Riddler, chief strategist at T3 Trading Group. Riddler Spread Bitcoin chart charts the movement of the digital asset since last year, indicating important technical points that led to a downtrend in its price.
The significant level identified by BTC recently is $17,600. This marks a new domestic decline after the cryptocurrency set a new record and fell below the peak of the previous cycle. Now, $17,600 is the level that the bulls should hold to avoid further declines.
Redler’s chart shows that if the digital asset fails to hold above this level, the next support is around $13,500. But what is even more interesting is the fact that below $13,500, the next potential point will be the dreaded $10,200.
BTC price fails to hold $20,000 | Source: BTCUSD on TradingView.com
The strategist explains that the month will determine where the BTC price ends next. However, if the bulls are able to hold above this level, which ends up as a retracement point, the next major level for BTC is above $25,000.
Will Bitcoin Suffer This Month?
Bitcoin is an asset that always follows historical trends closely. Even as she stepped out of established trends in 2021, she remained close to others. One of these was the infamous “September Curse”. For anyone who doesn’t understand what this is, the term was coined because the bitcoin price has always recorded a drop during this month.
Last year was no different in this respect despite the fact that the cryptocurrency market is deeply in the throes of a bull market. Bitcoin had started September 2021 at around $53,000, but had lost more than $10,000 of its value by the time the month drew to a close. This was despite remarkable adoptions, such as El Salvador officially accepting cryptocurrency as a digital asset, and Cardano finally making its debut with smart contract capability.
Given this, it is possible that Bitcoin will stick to this trend. The digital asset is already showing signs of decline, as the month starts above $20,000 and already drops below this important technical level. If BTC goes the way it did in 2021, the price will likely drop to around $16,000, which is around 20%, in line with the previous downtrends.
Featured image from Analytics Insight, chart from TradingView.com
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