BiBitcoin bulls have been stuck with challenging Bitcoin trading in September after a significant sell-off between September 24 and 26.
The shift towards bear dominance in the world’s largest cryptocurrency market has confirmed three consecutive months of price decline, despite strong rallies in the summer.
According to some analysts, indicators are pointing to the possibility of further price declines in the days ahead. Sebastian Sinclair, an analyst at CoinDesk, said a further price drop remained a possibility.
“Bitcoin has cemented its third straight monthly loss after September 24 and 26 produced a large sell-off and dragged prices lower, opening up the possibility for another price drop. Supposed bullish catalysts such as Bakkt’s physically-backed bitcoin futures product fell short of expectations, possibly raising a red flag for institutional investors. Both the weekly RSI and awesome oscillator demonstrate waning interest from bullish buyers leading to expectations of further price declines.”
Noting current trading prices, Sinclair said it was up to bitcoin bulls to rally behind BTC in order to reverse the short-term trend.
“The top crypto is currently changing hands at $8,234 on Bitstamp, representing a 1.17-percent decline over the last 24 hours. Further price drops are likely, should the bulls fail to reverse the damage done at the end of September.”
The development means those looking for a quick profit long on bitcoin should think about holding out for another week or so, until market momentum switches back to a bullish flavour. However, the short-term struggles have done little to dampen expectations of a more sustained rally. Particularly, in the approach to the final months of 2019.
Bitcoin has historically performed well over Q3 and Q4, rallying to highs around year end. This was notable in 2017, when BTC hit all-time highs of near $20,000.
While current trading levels still remain some way off the peak, there is cause for optimism. Bitcoin continues to get support by a growing number of merchants and institutions. Institutional investors, in particular, have never been more engaged.
The traditional end-of-year rally expected to be around the corner. Therefore, bitcoin bulls are getting advice to hold their nerve for at least another week or so. Hopefully, there will be a change of direction for BTC.