Key facts:
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Bitcoin has fallen more than 7% to $20,700 during trading on Tuesday.
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Despite the caution, sentiment remains mostly bullish.
The fall of bitcoin (BTC) and the rest of the cryptocurrency market this Tuesday, September 13, seems to have taken the world by surprise. So far this day, the cryptocurrency has lost more than 7% in its price, following the announcement of inflation in the United States.
With this move, BTC has gone from attempting to consolidate above the $22,000 mark to looking to hold above $20,000. At the time of writing this article, its exchange price on exchanges is around $20,700 per unit, according to data from CoinMarketCap.
Meanwhile, traders and analysts have reacted to this drop, which also affected ether (ETH) and the rest of the most important cryptocurrencies in the market. The general sentiment seems to point to caution, given that events with the potential to affect the market in the coming days are yet to come.
Yes indeed: the balance seems to be slightly tilted towards a bullish stanceinstead of expecting a further drop in BTC and the rest of the cryptocurrencies in the days to come.
One such bullish analyst is Michaël van de Poppe, @CryptoMichNL. Through his Twitter account, the founder of the firm Eight Global assured what the market seems to be preparing itself for potential negative news.
In his reading of the situation, he alluded to the possibility that next week an increase in interest rates will be announced once more, in response to inflation in the United States. In his opinion, “the worst is already entering the price.” In other words, there might not be a new downward reaction.
Van de Poppe added that It’s time to get away from “excessive trading”, in a kind of call to calm among investors. “Right now, lows are forming and it looks like some consolidation is taking place,” he said.
A historically bad month? The options market says otherwise
We are arriving in the middle of September. One that, as we have previously pointed out in CriptoNoticias, is considered as historically negative for the bitcoin market and cryptocurrencies. But so far that has not been the case. Over the course of this month, BTC has risen just over 3%, even counting today’s drop.
In this regard, the trader and tweeter known as @GameofTrades_ pointed out that the options market points in a different direction than that historical gray: the price at which this market points is regarding 25,000 dollars for the end of this month. That would imply a rise of close to 25% in all of September. As for the tweeter, your bet it is for that to happen instead of a further drop.
CROW (@TheCrowTrades), for his part, is also very cautious regarding his next moves in the market and advises that at times like these, it is best to don’t rush. Also expect a rise but says to be on the lookout and not having an entry in mind unless BTC returns to $21,700 once more.
Finally, @inmortalcrypto commented that everything is going according to his trading plan. He argued that right now his intentions is to keep buying at times of decline like this, below $21,000. In the event of a drop to 19,200, he does believe that we would be facing an invalidation of the price consolidation process for BTC.
Tuesday’s fall seems to have taken many by surprise. As we discussed in this newspaper earlier, in just over an hour traders lost more than 100 million dollars in their bullish positions. The majority was lost in ETH, although in BTC more than 24 million dollars were liquidated.