Bulls of the world’s number one asset, Bitcoin, failed to seize control of the market rally and, thus, ceded control to the bears. The price of Bitcoin continued to slide under the $20,000 mark again on Thursday as the selling pressure persisted. Analysts are saying the asset’s price might enter an inactive phase in the month of September.
Getting Ready for a Difference
Since 2017, the month of September is usually not so favorable for Bitcoin. The average price for Bitcoin fell by 8.5% in the month of September for the past 5 years. Nevertheless, analysts think things will be different this year since significant events and activities on blockchains improved better as a result of prices.
Bitcoin lost its position at $21,000 to the prevalent sell-off in the market which was predicted in a report before it happened. The asset price has, therefore, been in some inactivity for a while. The network’s demand has gone low in the same measure as the percentage fee of the block reward.
As it happened every time in the past, whenever there is a drop in the block reward percentage fees and it goes under 3%, then Bitcoin has been oversold and is bearish. Whenever the indices move over 3%, then the bearish trend comes to an end.
Traders might have to wait till the percentage fees accruing to the overall block reward rise beyond 3%. That will be indicative of more demands in the network, and by extension, it would mean that the market is about to gain more strength.
A Bulls’ Market Might be Far Away
It looks like a new bullish cycle is far off from now as the network’s demand is currently on the low side. Investors are, therefore, advised by analysts and market pundits to wait till the bearish market rally before they give a definite bullish sign.
Importantly, the Federal Reserve’s hawkish position voiced by its Chairman, Jerome Powell, and the sell-offs by top whales indicate that Bitcoin price might slip further.
Michael van de Poppe, a cryptocurrency analyst, is of the opinion that the price of Bitcoin might still go lower than $19.900. he said that $19,500 is present on the card. But he would rather break off the $20,600 line at a lesser time.
Another analyst, Crypto Birb, is of the opinion that the cryptocurrency market has become weak and exhibits stagnancy. He said most crypto assets are performing under their 20-period simple moving averages. It is, therefore, important for Bitcoin to break the 200-period weekly moving average.