Key Takeaways:
- Bitcoin’s 2023 price action has shown periods of bullishness followed by non-directional movement and minor corrections. Despite this, BTC remains up by 56% since the year’s start.
- BTC is stuck in a descending triangle pattern in the short term, considered bearish. A drop below $25,800 could lead to further decline. BTC has also broken below the 50 and 200-day exponential moving averages, with the potential for a death cross, indicating bearish sentiment.
- Influenced by Bitcoin’s dominance, the broader crypto market saw similar price patterns. A death cross occurred in the 50 and 200-day moving averages in early September 2023. The market cap teeters around $1 trillion, a crucial psychological level. A breakdown below this mark could trigger significant selling pressure.
- Altcoins like SafePal (SPL), Synthetic (SNX), and IOTA (MIOTA) have demonstrated bullish action despite Bitcoin’s bearish trend. Some altcoins, including THORChain (RUNE) and Render Token (RNDR), have seen reasonable gains in the past 24 hours.
Bitcoin Price Action
BTC/USD | Source: TradingView
- All through 2023, Bitcoin price action has been on a strong upward trajectory, seeing brief but strong spurts of bullishness, followed by a slower but more prolonged period of non-directional movement, or sometimes, some bearish action as well.
- However, despite that, BTC price is still up 56% as of writing this article since the beginning of the year, despite the minor correction the king coin has seen from its YTD highs.
- From an immediate short-term perspective, BTC price is stuck in a descending triangle chart pattern, which is widely considered to be a bearish pattern, and thus, a breakdown below the $25,800 mark could result in a continued drop in BTC price.
- BTC price has also broken down below the 50 and 200-day exponential moving averages, and additionally, the 50 & 200-EMA lines are on the verge of a death cross too, which would bring about further bearishness.
- Thus, overall – we can expect BTC price to see bearish action for the near future, but even now, on a longer timeframe, Bitcoin price remains moderately bullish.
Read More: Bitcoin Price Prediction
Crypto Market Overview
Total Crypto Market Cap | Source: TradingView
- The overall crypto market also saw similar price action as that of Bitcoin, and naturally so, thanks to the near 50% market cap dominance that is still held by the king coin. However, there have been some changes.
- The 50 and 200-day exponential moving averages have undergone a death cross just at the beginning of September 2023.
- However, the total market cap is barely managing to hold on above the crucial psychological mark of $1 trillion, and as long as that level is maintained, a quick recovery can be expected. However, a breakdown below the $1 trillion mark can result in a major long unwinding event in the market immediately followed by immense selling pressures across the board.
- With a Relative Strength Index (RSI) level just below 40, indications point to the high possibility of a continued downward trajectory too, bringing in further bearishness for the immediate future.
- However, a breakout beyond the $1.1 trillion, or a 10% recovery from current levels, can drastically change the picture, bringing the overall market above the 50 & 200-EMA and the bullish trendline (marked in blue).
Altcoins See Bullish Action!
Despite the broader bearishness in the market led by the king coin, Bitcoin – there have been small pockets of the market where altcoins have been making some amount of gains. Altcoins ranging from SafePal (SPL), Synthetic (SNX), and IOTA (MIOTA) have made strong gains over the past week, gaining over 18%, 17%, and 10%, respectively. Moreover, in the past 24 hours alone, THORChain (RUNE), and Render Token (RNDR) have made reasonable gains, too!
Additional Read: Bitcoin Technical Analysis
Conclusion
In conclusion, the crypto market in September 2023 paints a complex and intriguing picture. Bitcoin, the flagship crypto, has experienced a rollercoaster ride, oscillating between bullish spurts and non-directional movements. While short-term indicators suggest a potential bearish phase, it’s important to note that Bitcoin has still managed to maintain a significant year-to-date gain of 56%.
However, amidst this uncertainty, altcoins like SafePal (SPL), Synthetic (SNX), and IOTA (MIOTA) have showcased resilience and notable gains, offering a glimmer of optimism. Even in the face of Bitcoin’s bearish tendencies, some altcoins have managed to carve out pockets of bullishness.
As the crypto market navigates these intricate dynamics, investors and enthusiasts must exercise caution, keeping a close eye on key support and resistance levels. While immediate prospects may seem uncertain, the resilience of certain altcoins serves as a reminder that the crypto space is ever-evolving and full of opportunities, even in the most challenging of times.
The values have been taken as of 7 August 2023.
