August 29, 2023
The new week began with bitcoin prices hovering around $26,000, with August already shaping up to be the worst month of 2023. Despite a sharp crash 10 days ago, bitcoin price momentum remains questionable, with bulls looking powerless to regain control of the market. Given that September is typically a weak month for Bitcoin, will August come to an end, yet another downside surprise?
While personal consumption expenditures index (PCE) data was the bright spot for the cryptocurrency market this week, macro triggers took a backseat once again this week. However, traders and analysts remain on high alert, bracing for worse in the face of no sign of a rebound.
The main points of the five major bitcoin price performances worth watching this week are as follows:
BTC price tends to fall at the end of the month: Bitcoin price has had an impact on the previous close. Despite closing around the $26,000 level, BTC/USD quickly fell, dipping as low as $25,880 before edging higher, according to data from Cointelegraph Markets Pro and TradingView.
Challenging the uncertainty in September: September is generally considered a poor month for Bitcoin, and market watchers are paying special attention to the end of August at this time. With August delivering an 11% loss, many worried about another downside surprise.
Historical August risk: For Bitcoin, August has rarely brought joy to the bulls. BTC/USD fell 11% this month, and data from monitoring resource CoinGlass shows that August 2023 has competed with last year to become the worst August since 2015.
'Longest bear market in history': Bitcoin's recent bear market is clearly more severe than previous year's percentage gains. Micha l van de Poppe, founder and chief executive of trading firm Eight, called it "the longest bear market in history." Despite solid growth in the cryptocurrency's fundamentals, the price of Bitcoin has fallen more than 50%, with a 490-day bear market battering the market.
Bright future for hash rate: Bitcoin miners may have a glimmer of hope for the end of the year. There are theories that the halving of block rewards in April 2024 may prompt miners to push up the price of Bitcoin earlier. While the impact tends to be reflected in the wider market until changes in production cuts take place, the Bitcoin hash rate has entered unprecedented territory, showing miner activism.
These are the top five factors that will have the most impact on Bitcoin’s price performance this week, and investors and traders will need to keep a close eye on these factors for changes.
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