Bitcoin have retreated to a crucial area of support that served as the upper limit of the negative movement in late June at the 18,000 range.<\/p>\n
Bitcoin Breaks Crucial Level<\/p>\n
After falling below the bear flag at the middle of August, prices were able to fall further on a break of 20,000 before reaching a crucial area of support at around 19,600. Although it has just returned to action, this level has also served as a critical source of resistance for the leading cryptocurrency since 2017.<\/p>\n\n
BTC\/USD falls below $20k. Source: TradingView<\/a><\/p>\n This places a strong downward pressure on Bitcoin as it moves into September. Additionally, according to cryptocurrency expert Ali Martinez<\/a>, Bitcoin\u2019s market share has fallen below 39% for the first time since 2018.<\/p>\n For Bitcoin maximalists, this is troubling news as alternative cryptocurrencies continue to overtake the cryptocurrency monarch.<\/p>\n Popular cryptocurrency analysts have also drawn attention to a concerning trend in Bitcoin\u2019s prior September performance.<\/p>\n For instance, according to one expert, Bitcoin has experienced a losing month-end in nine of the last twelve Septembers. On September 7th, Glassnode reported<\/a> that 19.29 million BTC addresses had losses.<\/p>\n\n Source: Glassnode<\/p>\n When BTC\/USD hit an all-time high of $19,666 on December 17, 2017, it reached its pinnacle. Since then, a breach of this zone in December 2020 has driven an upswing that has helped the major cryptocurrency increase before reaching a new record high of $69,000 in November of last year.<\/p>\n Selling pressure has returned prices below the late-June low of $18,595, following a fall below previous support that had turned into resistance.<\/p>\n Price May Crash Further<\/p>\n In the event that prices drop further, a break of the $18,000 psychological level could lead to a retest of the $17,792 level, which represents the 78.6% retracement of the move from 2020 to 2021, with the December 2020 low of $17,569 serving as the next level of support.<\/p>\n The four-hour chart shows how these historical levels have created zones of confluence that continue to keep both bulls and bears at bay as short-term price movement oscillates between $18,500 and $19,000. Retests of $19,666 and the subsequent layer of resistance at $20,418 are likely on the upside if the price rises above $19,000 and $19,500.<\/p>\n In a recent report,<\/a> the Glassnode also mentioned a potential negative market movement from Bitcoin. It claimed that around 12.589 million BTC, or over 65.77% of the total amount of BTC in circulation, have been dormant for at least a year.<\/p>\n\n Source: Glassnode<\/p>\n In the past, \u201cBitcoin bear markets\u201d have been characterized by an expanding inactive supply. The pain felt by maximalists who have been patiently waiting for a price breakout is increased by this.<\/p>\n Short-term volatility was predicted by BaroVirtual<\/a>, a CryptoQuant-based author. The analyst studied the Net Unrealized Profits (NUP) trending pattern, which exhibits short-term periods of volatility.<\/p>\n Featured image from Shutterstock, charts from Glassnode and TradingView.com<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Bitcoin have retreated to a crucial area of support that served as the upper limit of the negative movement in late June at the 18,000 range.<\/p>\n Bitcoin Breaks Crucial Level<\/p>\n After falling below the bear flag at the middle of August, prices were able to fall further on a break of 20,000 before reaching a crucial area of support at around 19,600. Although it has just returned to action, this level has also served as a critical source of resistance for the leading cryptocurrency since 2017.<\/p>\n BTC\/USD falls below $20k. Source: TradingView<\/a><\/p>\n This places a strong downward pressure on Bitcoin as it moves into September. Additionally, according to cryptocurrency expert Ali Martinez<\/a>, Bitcoin\u2019s market share has fallen below 39% for the first time since 2018.<\/p>\n For Bitcoin maximalists, this is troubling news as alternative cryptocurrencies continue to overtake the cryptocurrency monarch.<\/p>\n Popular cryptocurrency analysts have also drawn attention to a concerning trend in Bitcoin\u2019s prior September performance.<\/p>\n For instance, according to one expert, Bitcoin has experienced a losing month-end in nine of the last twelve Septembers. On September 7th, Glassnode reported<\/a> that 19.29 million BTC addresses had losses.<\/p>\n Source: Glassnode<\/p>\n When BTC\/USD hit an all-time high of $19,666 on December 17, 2017, it reached its pinnacle. Since then, a breach of this zone in December 2020 has driven an upswing that has helped the major cryptocurrency increase before reaching a new record high of $69,000 in November of last year.<\/p>\n Selling pressure has returned prices below the late-June low of $18,595, following a fall below previous support that had turned into resistance.<\/p>\n Price May Crash Further<\/p>\n In the event that prices drop further, a break of the $18,000 psychological level could lead to a retest of the $17,792 level, which represents the 78.6% retracement of the move from 2020 to 2021, with the December 2020 low of $17,569 serving as the next level of support.<\/p>\n The four-hour chart shows how these historical levels have created zones of confluence that continue to keep both bulls and bears at bay as short-term price movement oscillates between $18,500 and $19,000. Retests of $19,666 and the subsequent layer of resistance at $20,418 are likely on the upside if the price rises above $19,000 and $19,500.<\/p>\n