Bitcoin Price Forecasted to Decline in September, Analysts Predict
Bitcoin could face challenges in September, as per a recent report that highlights seasonal trends, exhaustion signals, and macroeconomic factors as potential indicators of weakness for the leading cryptocurrency in the upcoming month.
Fairlead Strategies, a technical analysis firm, mentioned in its weekly report that September typically marks a seasonally weak period for risk assets. The report suggests that volatile assets may be impacted the most during a correction, albeit temporarily.
Several technical indicators point towards potential downward pressure on Bitcoin. The appearance of short-term exhaustion signals is a significant factor contributing to this outlook.
The report highlighted the DeMARK Indicators, noting that signs of upside exhaustion are emerging. Once the daily stochastics fall below 80%, there could be an increased risk of retesting support levels around $56,500.
Fairlead Strategies also expects weak intermediate-term momentum for Bitcoin, with a monthly counter-trend signal from the DeMARK Indicators indicating the potential for two more months of corrective price action.
Despite these short-term concerns, the report maintains a long-term bullish stance on Bitcoin. Key price levels to watch include trendline resistance near $70,000. Currently, Bitcoin is trading at $62,145, reflecting a slight decline over the last day.
The report also evaluates the performance of other popular cryptocurrencies relative to Bitcoin. The Relative Rotation Graph (RRG) over a 12-week period shows positive trends for Avalanche (AVAX), Chainlink (LINK), and Solana (SOL), indicating potential strength compared to Bitcoin in the near future.
However, Ethereum (ETH) and Uniswap (UNI) are positioned less favorably, with the report suggesting downward trends for these cryptocurrencies.
In conclusion, while short-term challenges may lie ahead for Bitcoin, the long-term outlook remains positive. Fairlead Strategies’ analysis provides valuable insights into potential market movements and highlights key factors to monitor in the cryptocurrency space.
