Bitcoin targets $54,000 amid September struggles
Bitcoin (BTC) started the week trading in the $58,000 range after barely above $60,000.
Analysts warn that conditions may get worse before they improve, especially with the presence of a reversal zone that could affect price movements. In addition, crypto markets are awaiting key events this month, which may increase volatility for Bitcoin.
Bitcoin is at risk of further correction
QCP Capital researchers expect Bitcoin to face further correction, Bitcoin may find strong support around the $54,000 level. This comes after Bitcoin ended the month up 8.6%, previously affected by the Bank of Japan (BOJ) crash.
QCP suggests a -4.5% retracement of Bitcoin's historical trend in September, suggesting a possible return to around $55,000. Indeed, historical performance data paints a grim picture for September. According to Coinglass, Bitcoin has had a consistently low performance this month, returning an average of -4.78% since 2013.
Read more: How to buy Bitcoin (BTC) and everything you need to know
Moreover, the third quarter (Q3) has historically been difficult for Bitcoin and the broader crypto market, while September often brings caution among investors. This trend has been reflected in the poor performance of Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust (IBIT). A recent CryptoQuant report cited less stable coin flow, suggesting investors are cautious and believe the bearish trend may continue.
However, prominent trader Diane CryptoTrades suggests a possible short-term pullback due to a new CME gap near $59,000 and last week's gap.
“A new CME gap was created this weekend, sitting at ~$59,000. “The gap from last week is still partially open, but the price has closed most of it as it moves towards $61,000,” the trader wrote.
A CME gap occurs when the price of bitcoin on the Chicago Mercantile Exchange (CME) varies between the market close and the weekend or post-holiday open. These gaps are often filled as the price tends to return to the gap level.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Amid the current market volatility, Bitcoin Wells are actively adjusting their portfolios. For example, one whale withdrew 1,100 BTC from Binance, and another bought 1,000 BTC to increase their holdings.
Avinash Shekhar, co-founder of Pi42, specifically predicts further changes in upcoming US economic events. Note that September's strong employment report may upset expectations for easy monetary policy.
“A strong September US employment report could dampen expectations for easy monetary policy, leading to more market volatility. However, there is also a 50% chance of an upside,” Shekhar told BeinCrypto.
So far, Bitcoin is at $58,391, down 0.31% in the last 24 hours.
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