Statistically speaking, September was a poor month for the bitcoin market. Investor returns have been negative for the previous four September. The value of the largest cryptocurrency has dropped 20% since August 1. The technical analysis may point to a further fall in September as the trading session for today comes to a conclusion.
September has been a generally bad month for bitcoin since 2017. Over the past five years, the average monthly decline in the price of bitcoin was 8.5%. However, crypto analysts believe that this year is different as the price declines along with increased adoption of fundamentals and on-chain activities.
A market-wide sell-off caused the price of Bitcoin to fall below $21,000. The price of Bitcoin has been inactive for a while. Due to the low percentage of fees in total block rewards, there is less demand on the Bitcoin network. In the past, the BTC has always been oversold and bearish if the proportion of fees in the block reward falls below 3%. The negative cycle typically ends once the indicator rises above 3%.
Traders should hold off until the entire block reward exceeds 3% in terms of fees. This would indicate increasing network demand, pointing to potential market strength. Network demand is still minimal, so a new bull run is still a long way off. Therefore, investors should watch the bearish rally to signal a clear positive trend.
What are the Expert Opinions?
The price of Bitcoin at $19.9k, in the opinion of cryptocurrency analyst Michal van de Poppe, may further decline. A $19.5K sweep is anticipated. Additionally, he favors a break of $20.6k at shorter time frames to signal the end of a bullish trend.
As most cryptocurrencies are trading below their 20-day SMA, the crypto market is weak and stable, claims Crypto Birb. For bitcoin to succeed, a break above the 200-WMA at $23k is necessary.
