The Price Of BTC Approaches A New $20K Drop

Old all-time highs from 2017 are coming back to haunt Bitcoin as this September price’s movement shows no signs of respite.

As the bears regain power, Bitcoin (BTC) opens the second week of September still attempting to establish $20,000 as a support level. With a weekly finish that is nearly precise to the $20,000 threshold, the largest cryptocurrency returns from a sideways weekend, but that crucial psychological milestone is already in trouble.

Since the so-called “Septembear” phenomenon typically causes the price of bitcoin to decline in September, expectations already supported additional negative during this month, and thus far, there hasn’t been much proof that this year will be different from others. Despite the slight losses, BTC/USD is down 1.5% as of September 2022, and several possible triggers are in the works.

Outlook on Crypto Markets

Macroeconomic unrest is still prevalent throughout most of the world, with a growing focus on Europe as the energy crisis develops and the euro falls to twenty-year lows vs the dollar. There is limited potential for a cryptocurrency burst to the upside as stocks are also struggling against a relatively strong dollar. However, recent weeks have seen a steady stream of macro BTC price bottom indications, leading a small number of analysts to discreetly stay optimistic about the future.

Il Capo of Crypto, a well-known trader, maintained his predictions for a short squeeze into $23,000 and a reversal with a likely bottom of $16,000. After rebounding from range lows into the weekly close, fellow trader Cheds verified that the 4-hour chart “continues to range.” In contrast, TMV Crypto used relative strength index (RSI) statistics in its most recent update to suggest a downward bias on the same timeframes.

He mentioned that the H4 RSI is now bearish. Losing 19700 would push Bitcoin below July’s lows of 18777 and closer to August’s lows. If 19986.5 levels on H4 can be reversed and utilized as support, bulls will be looking to long to 20.8.