On September 5, Bitcoin dropped into a critical range between $56,600 and $52,500, reminiscent of its volatile August 5 performance when it hit $49,000 twice in one day. Known for its historically weak performance in September, Bitcoin’s drop below $56,600 raised concerns. However, on September 9, Bitcoin made a surprising rebound.
Let’s explore why this happened.
In the past 24 hours, the cryptocurrency market cap increased by 2.51%, reaching $2.09 trillion. Bitcoin’s price surged by about 6.52%, surpassing the 20 and 50 moving averages. However, the 100 moving average acted as resistance, causing Bitcoin to drop 2.5% to test the support zone around $56,600 again. The Relative Strength Index (RSI) showed bullish momentum at 61 points, and the Fear and Greed Index improved from a high fear level of 26 to 33, indicating reduced market fear.
Technical analysis suggests Bitcoin will try to hold its support at $56,600, but the historically bearish trend in September might still benefit the bears. It’s crucial for Bitcoin to stay above this support level; otherwise, it might need to look for support around $50,000 before bouncing back.
Data from IntoTheBlock shows that most Bitcoin investors are currently in profit, with 79% having bought BTC below $56,960. Conversely, 13% are still at a loss, and 8% purchased at the current price
Approximately 4.55 million Bitcoin addresses, holding a total of 2.26 million BTC, bought their assets between $55,507 and $61,396, with an average buying price of $58,690. A significant resistance level is at $60,000, where 6.93 million addresses hold 3.14 million BTC, bought between $61,396 and $72,500, creating a substantial $11,000 price gap.
In the last 24 hours, around 39,647 trades were liquidated, totaling $128.42 million. Notably, while long trades dominated liquidations two days ago, the recent data shows short trades were liquidated, suggesting a bullish signal. Bitcoin experienced the largest short liquidation at $43.85 million, followed by Ethereum at $31.98 million.
Dogecoin, which often follows Bitcoin’s price, also saw a short liquidation of $2.57 million.
The founder and chairman of famous Microstrategy, Michael Saylor was invited by CNBC on September 9 for a discussion on Bitcoin. When he was questioned about his opinion on the profits generated by Bitcoin he did not hold back and clearly shared the profits his company is making with BTC. He said that since August 2020, Microstrategy has bought about $8.3 Billion worth of Bitcoin.
“We leveraged Bitcoin and are 825% up while the number 1 stock in S&P is 821%. So we beat every single company in S&P using our Bitcoin strategy.”
When asked about the recent $1.2 Billion worth of outflow from the Bitcoin Spot ETFs, Saylor replied by saying that he thinks generally that’s a good thing as it created more demand. Bitcoin is a smart money and it is the most liquid and fungible free market in the world.
When asked about Bitcoin’s behavior during market panic, Saylor explained that long-term holders typically profit, as Bitcoin has historically offered an average annual return of about 44%. He also noted that even short-term traders find many arbitrage opportunities in the market.
If you can hold Bitcoin for more than 4 years, you are going to get superior performance with its volatility. As of now Bitcoin is merely 0.1% of world market cap and it is going to be 7%.”
Saylor also projected that Bitcoin could reach $13 million in the next 21 years, emphasizing the benefits of holding Bitcoin over the long term.
Following this interview, Bitcoin’s market momentum shifted positively. With Michael Saylor’s strong confidence in Bitcoin, it’s no surprise the market reacted positively. Bitcoin’s 7% rise in the historically weak month of September suggests that over the past decade, the cryptocurrency has evolved. Recent trends indicate that market panic often creates buying opportunities, allowing Bitcoin whales to accumulate assets and strengthen their positions.
Read Also: Crypto Crackdown Goes Wild: SEC Collected $4.7 Billion in 2024—Record-Breaking Year for Fines!
What do you think? Will Bitcoin continue its upward trend, or will it face another dip?
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