One analyst says that a matter of a few hundred dollars could separate Bitcoin (BTC) price action from a “short squeeze.” According to another analyst, the BTC price will most likely enter a period of inactivity in September.
Analyst watches for $20,700 short squeeze trigger
Bitcoin offers little insight into which direction the next breakout will take, with differing views in the surrounding. Amid downward pressure on risk assets and a strong US dollar, the general consensus is for continued long-term weakness.
However, for popular analyst Crypto of Capo, there is still reason for a surge of relief to come in first. With the majority of the market waiting for sudden losses to continue, it’s possible for shorts to ‘squeeze’. This, too, is likely to push the spot price from the multi-day range to $23,000. The analyst makes the following assessment:
The main drop TL was broken. A bullish confirmation of a short squeeze means 20,700-20,800 resistance is broken. After that, we need to see 22,500-23,000. Invalidity for the idea of a short squeeze: 19,500 is broken. Major confirmation: 19,000 would be a clean break.
Bitcoin (BTC) is entering its historically bad month
cryptocoin.comAs you follow, Bitcoin bulls failed to take control of the rally and pushed BTC into the hands of the bears. BTC price continues to slide below the $20,000 level amid selling pressure and bearish sentiment. According to analysts, Bitcoin will most likely enter a period of inactivity in September. September has been a historically bad month for Bitcoin since 2017. BTC price has dropped by an average of 8.5% in September over the past 5 years. However, crypto analysts say this year is different as fundamentals and on-chain activity improve during adoption due to price drop.
Bitcoin price dropped below $21,000 due to market-wide selling, as predicted in a previous report. Bitcoin price is in a long period of inactivity. Bitcoin network demand is low as the percentage of fees in the total block reward is low. Historically, BTC is oversold whenever the percentage of fees in the block reward falls below 3%. When the metric rises above 3%, the bearish cycle usually ends.
According to experts, investors should wait until the percentage of fees in the total block reward rises above 3%. Because this percentage will show the increasing demand in the network and give an idea of the potential market power. Experts note that the new bull cycle is still far away as network demand is still low. Therefore, traders should wait for a bear rally for a clear bullish signal. Also, Fed Chairman Jerome Powell’s hawk stance and sales of sleeping whale accounts indicate the possibility of further slippage in Bitcoin price.
What do crypto analysts say about Bitcoin (BTC) price?
Crypto analyst Michaël Van de Poppe says that Bitcoin can still drop from $19.9k. “There is a $19.5K sweep on the cards,” the analyst says. It also prefers a $20.6k breakout on the lower timeframes to continue the uptrend.
According to Crypto Birb, the crypto market is weak and stagnant as most cryptocurrencies are below the 20-day SMA. Therefore, breaking the 200-WMA at $23,000 is crucial for Bitcoin.
According to Crypto Tony, September is historically a bearish month for BTC. Therefore, the analyst expects false exits, volatility and inactivity.
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