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Our analysis of the situation
It’s been a rough ride for the world’s most famous cryptocurrency lately. Bitcoin (BTC) hit an all-time high of $73,700 in March, only to tumble down a slippery slope, landing in the red zone with losses of 8.6% in August. With the bearish sentiment looming large, the crypto community is bracing for what might come next in September.
It seems that the stars are not aligning in Bitcoin’s favor, with the “BOJ (Bank of Japan) crash” in early August sending the digital gold to a six-month low of $49,000. Since then, BTC has been struggling to regain its footing, hovering below the $65,000 mark. Dark clouds loom even larger when you consider the historical data, which paints a gloomy picture for Bitcoin in September. Over the past seven years, six Septembers have seen BTC tumbling, with an average loss of around 4.5%.
But hold your horses there, Bitcoin bears! It’s not all doom and gloom. Our friends at CryptoQuant suggest that Bitcoin will find strong support around the $54,000 level, a level it has successfully bounced from previously. In fact, despite the recent rough patch, some investors are so bullish about Bitcoin's long-term prospects that they are buying long-term call options. Take, for example, a 200x call option for Bitcoin, expiring in March 2025 with a strike price of $120,000, which has seen its open interest surge to 2,100 contracts. Someone is definitely not short on confidence about Bitcoin's future.
As we gear up for the days ahead, it's worth keeping an eye on the economic data. However, don’t hold your breath - according to CryptoQuant, the impact of these metrics on cryptocurrency prices has been losing its punch lately. The volatility curve for Bitcoin is set to get steeper, and despite the recent retracements, there’s still a glimmer of hope for those who believe in the long game.
So, where do we stand now? Currently, Bitcoin is trading at $58,400, down 0.2% over the past 24 hours and 5.5% over the past 30 days. But let's not lose sight of the bigger picture - Bitcoin is still up 126% since the beginning of the year, making it one of the best-performing tokens out there. And that, my friends, is what we call resilience.
As we navigate through the choppy waters of September, keep your wits about you, but also keep the faith. Bitcoin may be down, but it's certainly not out.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!