While the sharp and sudden decline in Bitcoin and altcoins caused investors to panic, questions such as “Will the decline continue? How long will it continue?” came to the fore.
While many analysts expect Bitcoin and cryptocurrencies to rise after the Fed made its first interest rate cut in September after the difficult summer months, analysis firm Fairlead Strategies stated in its weekly report that Bitcoin may have a difficult period in September.
Analysts pointed to seasonal trends, exhaustion signals, and macroeconomic factors as indicators that BTC would show weakness in September.
“We are entering a generally seasonally weak period for riskier assets like Bitcoin in September. A correction usually hits the most volatile assets the hardest, but these corrections are temporary.”
Technical Indicators Point to Correction in Bitcoin!
Fairlead Strategies analysts said the DeMARK indicator is showing bearish signals for Bitcoin and there is a risk of testing the $56,500 support.
According to the DeMARK indicator, analysts expecting weak momentum for Bitcoin in the short to medium term claimed that the correction could continue for another two months.
“The counter-trend signal from the DeMARK indicator and the weak medium-term momentum support corrective price action that could continue for another two months.
These indicators suggest that there is potential for Bitcoin's price to continue downward or sideways after September.”
Analysts also noted that the decline in Bitcoin could also be affected by the recovery of the US dollar index, saying, “The Dollar Index, which tends to have a negative correlation with Bitcoin, seems ready for a recovery in the near term, which supports the decline in BTC.”
Analysts stated that although they expect a decline in the short and medium term, they maintain their expectation of an increase in the long term, and said that the resistance around $70,000 is the main price level to watch.
Three Altcoins Could Outperform Bitcoin!
Analysts also recently examined altcoins in their Relative Rotation Chart (RRG) review.
According to the RRG chart, analysts noted that Avalanche (AVAX), Chainlink (LINK), and Solana (SOL) are showing recovery, gaining strength in the past few months, and could outperform Bitcoin in the near future.
However, not all cryptocurrencies such as AVAX, SOL, and LINK are showing positive signals. Analysts noted that Ethereum (ETH) and Uniswap (UNI) continue to remain in the most negative position according to the RRG chart.
*This is not investment advice.
