Bitcoin and the rest of the cryptocurrency industry have a very strenuous relationship with September due to the rapid fluctuations that occur in terms of price and market cap. This pattern has been ongoing for years now and 2020 is no different.
As September enters its final week, the world’s largest cryptocurrency has hit a bearish wall with prices falling to its lowest in 7 days. This has come on the back of a sharp by fall in DeFi asset prices in the past two weeks.
An analysis of the Bitcoin ecosystem showed a clear impact mid-week with the prices falling below the $10,500 mark. At press time, Bitcoin was trading for $10,404 with a total market cap of $192.45 billion. These figures were reached after a red streak in the 1-hour, 24-hour and 7-day time frames. The cryptocurrency’s daily trading volume had also fallen to $23.21 billion with predictions claiming it would touch the $22 billion mark at this rate.
Bitcoin’s short term technical analysis backed the recent fall with all the indicators siding with the bear. The cryptocurrency created new immediate support as the price stagnated below $10,500. The Parabolic SAR was below the price candles which meant that Bitcoin was stuck in bearish terrain. The markers were last above the candles a few hours before the support crumbled.
According to the BTC Relative Strength Index, more and more users were selling their tokens in the wake of the price fall. This was indicated by the graph falling towards the oversold zone after staying in between the graph for an extended time period. If one looks at the previous 24-hours, it becomes evident that Bitcoin has been struggling to climb towards the overbought zone.
The third indicator on the list was the Chaikin Money Flow indicator which just fell short of crossing the zero line. Bitcoin holders and fans alike could take a reprieve from the fact that the metric rose from the depths after the price crash in the wee hours of September 22. The market’s volatility needs to be observed for a bit longer to concretely claim that Bitcoin was heading into an extended bear run.