Bitcoin Price Correction Predicted by Analysts
The U.S. Securities and Exchange Commission’s decision to delay Bitcoin ETFs until October has put pressure on Bitcoin’s price. Analysts like Peter Brandt, Michael van de Poppe, CredibleCrypto, and Rekt Capital have predicted a further correction, with a possible drop to $24,800 before a potential recovery. However, concerns about a bear market in September have renewed speculation of even more correction.
September Historically Weak for Bitcoin
September has historically been a weak month for risk assets, and analysts like Michael van de Poppe have pointed out that Bitcoin has not had a positive September since 2016. In the past, Bitcoin has lost between 5-8% during this month, suggesting a possible drop to $23-24k. Despite this, van de Poppe remains bullish on a massive rally in Q4 and sees potential entry points at $24,700-25,200, especially considering the upcoming Bitcoin halving.
Bitcoin Price Drop due to Forced Liquidations
According to CredibleCrypto, the primary reason for Bitcoin’s price drop is large forced liquidations and not spot holders selling. Aggregate open interest (OI) data indicates that there are not many traders left to liquidate, suggesting a limited downside. When OI drops below 7 billion levels, buying typically occurs. Currently, Bitcoin’s open interests are at 7.5 billion, indicating a possible limited downside after the price falls below $24,800.
BTC Price Struggles to Hold Support
The delay in Bitcoin ETFs has led many to exit the market, strengthening the bears’ technical advantage. New lows could result in a bearish downside breakout. Additionally, the rise of the US dollar index (DXY) after inflation and jobs data has added pressure on Bitcoin’s upside movement. Currently, Bitcoin’s price is at $25,800, down 1% in the last 24 hours, with a trading volume indicating a lack of interest from traders.
Hot Take: Will Bitcoin Recover or Face Further Correction?
The delay in Bitcoin ETFs and the historically weak month of September have created uncertainty around Bitcoin’s price. While some analysts predict further correction, others remain bullish on a potential recovery in Q4. With limited downside indicated by open interest data, it could be an opportunity for buyers to enter the market. However, the strengthening bears and the pressure from the US dollar index could continue to hinder Bitcoin’s upside movement. Only time will tell if Bitcoin will recover or face further correction.
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