Bitcoin Price Poised for Re-Test of Critical Support Amid Negative Sentiment
The Bitcoin price has been relatively stagnant in recent weeks, but a recent surge in volatility has raised concerns among traders. With sentiment turning negative, many are anticipating another re-test of critical support levels. As of now, Bitcoin (BTC) is trading at $26,200 with a 3% profit in the last 24 hours. It recorded a 2% profit the previous week, making it the top performer in the top 10 cryptocurrencies by market capitalization.
Impending Option Expiration Event Could Trigger Volatility
Trading desk QCP Capital predicts that the crypto market is on the verge of entering its final quarter, coinciding with a significant option expiration event scheduled for September 29th. These events often lead to heightened volatility as major players adjust their positions and roll out contracts for future expiration dates. Additionally, QCP Capital highlights the confluence between macroeconomic forces and their Elliot Wave count in late September, signaling potential bearish price action.
Potential Bearish Trajectory Supported by Various Factors
QCP Capital believes that Bitcoin may correct to around $23,000 to complete the trajectory corresponding with a Wave B according to the Elliot Wave theory. Several bearish factors, including the Mt. Gox Bitcoin unlock and the FTX exchange incident, align with this potential trajectory. The trading desk suggests that this bearish trend could persist until mid-October. However, QCP Capital remains optimistic for late 2023 and 2024, anticipating a recovery after the supermoon in early October and a true bottom in mid-late October.
Hot Take: Bitcoin Price Faces Potential Re-Test of Support Levels Amid Negative Sentiment
As sentiment turns negative, the Bitcoin price is at risk of re-testing critical support levels. The upcoming option expiration event and the convergence of macroeconomic forces and Elliot Wave count in late September suggest a potential bearish trajectory for the cryptocurrency. QCP Capital predicts a correction to around $23,000 before a recovery in late 2023 and 2024. While the market may experience increased volatility and uncertainties in the short term, a bottom could be reached by mid-late October, paving the way for a more positive outlook in the future.
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