Volatility seems to have evaporated from the crypto market. Bitcoin has remained stagnant on the price front over the past few days. On a daily basis, the deviations have not crossed over 3%.
At this juncture, it is essential to note that nearly 7 million addresses have bought Bitcoin in the price bracket between $61.7k and $72.5k. That is the largest resistance cluster that the asset faces at this stage.
With the price hovering below $60k, all these holders are underwater. Every time BTC has tried to march past the floor of this range, it has been greeted with consistent sell pressure by investors looking to break even.
Furthermore, on the daily timeframe, BTC is yet to break-above its EMA resistance band ranging from $59.5k to $61.7k.
A this stage, the asset is in dire need of buy-side momentum to pick up pace so that the price can power through and bid adieu to the current stagnant range within which it has been encapsulated.
Furthermore, September is typified to be a bearish month. The average returns stand at -4.3%. However, that has not been the case all the time. Pseudonymous analyst Rekt Capital brought to light,
“Single-digit BTC downside in September happens 54% of the time. Single-digit upside in September happens 27% of the time. Double digit downside in September happens 18% of the time.”
However, deep double-digit downsides have only taken place during typical bear markets.
Market participants currently believe that if the Fed cuts the interest rate in September, the tides could reverse in BTC’s favor.
The increased dollar flow within the economy could further bolster bulls to add to their bags and enhance the outlook of BTC as a store of value.
Julio Moreno, CryptoQuant’s Head of Research, recently simulated the price of Bitcoin for September by taking into account the historical daily returns. Chalking out what to expect this time around, he said,
“On average it would be slightly lower, ending at $55k. Prices would mostly be between $44k and $66k.”
