September started off extremely spectacular for bitcoin. The cryptocurrency, which tried to stay above $12,000 until just a few days ago, has become an asset struggling to stay above $10,000 as we enter the second week of new month.
“All different than 2018”
While what will happen next is eagerly awaited, one analyst claimed that what is happening now is a very different scenario than in 2018.
According to Rekt Capital, what happened in 2018 was simply a bear market. The Bitcoin price drop nowadays is like a break in the middle of the bull market.
The small drop now will be very different compared to the bear market in 2018. BTC in the 2018 market was in a macro downward trend with breaks on the way to the new YEARLY lows. In this bull market, BTC is in a general uptrend with small retracements on the way to new highs.
Although the BTC/USD chart looks pretty bad in the short-term timeframes, there is not much reason to disagree with Rekt Capital from a more distant perspective. The moving average (MA), one of the key indicators, shows that the asset is still strong against the dollar in the long term.
The $10,000 psychological threshold is a crucial level for bitcoin in both the bear and bull markets. Although bitcoin remained below this level for a while, it passed here while rising in July. It has since jumped above $12,000 but has been in a downtrend for several days.
How is the investor sentiment?
For this, we must first explain what the concept of “savings addresses” is. These are the addresses with at least two inbound transfers and no money spending. The metric excludes addresses belonging to miners and exchanges, and addresses older than seven years.
According to the Glassnode, the number of savings addresses increased by 2% to 513,000. The divergence between prices and savings addresses shows that traders see the recent price drop as a typical bull market decline and expect prices to rise once again.
CME gap may be filled
While bull traders try to maintain the psychological level of $10,000 by support, the bears continue to move towards the CME gap target of $9,665. If BTC crashes further after filling the gap, we can state that 4-hour Fibonacci extension supports are projected at 9.945, 9.848, 9.532, 9.216 and $9,022.
So do you think the bitcoin price will fall further to fill the CME gap, or will it rocket to moon after a short break? Share your comments with us below.