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Bitcoin bears grip on the market pushes price towards $25,000

In 2017, 2020, 2021, BTC price retraced at an average of 7% to 8% in September.

Bitcoin has continued to fall close to the $25,000 levels following a crash last week after a over $1k gain.

The market sentiment has turned bearish per the fear and greed index.

Large outflows and slumping Bitcoin price

Cumulative outflows between the third and last week of August totalled $179M. The 18-week streak of outflows has removed 89% of the total assets under management dedicated to crypto investments.

Bitfinex said that the large outflows are attributed to investor pessimism as news of US Securities and Exchange Commission (SEC) deciding to delay decisions on pending spot Bitcoin ETF applications.

“The above data suggests that it will take longer than anticipated to get a bullish catalyst for the markets, and the longer the ETF saga draws on, the less pronounced the effect could be on actual market prices across crypto assets,” Bitfinex said.

Source: Kaiko

Kaiko data, however, disagrees. The data noted that Grayscale ruling was hardly able to boost Bitcoin’s volumes. Noting that August 29 ranked 504 out of 973 days (since the start of 2021) in terms of Bitcoin volume.

Read more: Bitcoin in September: No love

Bears continued grip pushes price

Bitcoin started the week trading slowly downward with the price trading at $25,725 at press time.

Pointers like the bad historical days in September have supported the continued retracement of the price. For example, in 2017, 2020, 2021, BTC price retraced at an average of 7% to 8% in September.

Despite the bad tidings, the chances for a massive crash is slim as Bitcoin hasn’t recorded double digits in two consecutive months. August has already lost 13.5% in August, and such a steep loss would be next to impossible this month.

The Bitcoin halving, which is approaching in 2024, should be noted. In terms of supply and demand dynamics, this event has traditionally had a significant impact. As a result of the halving, the amount of freshly created BTC that might enter the market will be reduced by half. In the relatively recent economic history of Bitcoin, it has served as a bullish catalyst.

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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