Bitcoin price is back under $20,000 while Ethereum price has dropped below $1500. The global market capitalization has shrunk below $1 trillion, shedding more than 6.5%, maybe as a result of Fed Chair Jerome Powell’s speech recently at Jackson Hole Conference.
In his speech, Powell made clear that central banks would use all their tools very effectively to curb inflation, which is at a 40-year high. He also said that the increased interest rates may continue for a long time and also expected that the central bank will continue to raise interest.
Soon after his speech the S&P 500 fell at an average of 500 points, which was the worst since mid-June. On the other hand, the Bitcoin price fell closer to 9% from the previous day’s highs, marking the lows at $19,920 at the press time. While the bearish September is on the cards, more bearish sentiments coil up that may mark new lows for the popular assets.
History shows that September has been the slowest month since 2013, except for a few years in 2015 and 2016. Many analysts believe that investors exit their positions before the annual closing mainly after returning from the summer vacations in September. However, the trend for the current year is a bit more varied than in previous years.
Bitcoin (BTC) Price May Plunge Hard in September
With the recent plunge, the BTC price is again testing the 2015 trend line but a strong rebound may not be expected as before. Previously, in 2015 and 2020, when the asset tested the trend line, the bulls jumped in action and mounted extreme buying pressure, preventing the asset to drop hard.
Hence, if one believes in a healthy rebound, one may have to wait for a long time as no strong demand has been registered this time around. The upcoming monthly close can have a big impact because a bearish close could promote a firm downswing to reach new lows in September. However, October has been largely bullish with huge gains in most cases.
Hence, after a bloody September, the Bitcoin(BTC) price is expected to rebound finely in October with double-digit gains.
