After the Federal Reserve annual meeting, BTC prices and other cryptocurrencies started a downhill trend on August 26. As of August 29, the market is showing no sign of recovery. Instead, the total crypto market cap has lost its $1 trillion mark. The current crypto market cap level stands at $950 billion, after losing a whopping $50 billion in 24 hours.
BTC’s price lost its stand above $20k to settle at $19,510 on August 28. It gradually climbed to $19,853.93 on August 29 before falling to $19 817.
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As things stand, the cryptocurrencys’ price movement is not showing any support from investors. Although BTC’s dominance increased in 24 hours, the market has moved to the “Extreme Fear” state.
Will BTC Recover?
A top analyst has squashed optimism that the BTC price will recover in the short term. The strategist recently shared some insights on Bitcoin’s historical price movements, indicating that September is never a good month for the crypto.
The analyst known by the pseudonym Rager disclosed this information to his 206,100 followers on Twitter. Rager pointed out that even equities are struggling currently, and BTC dipping shows a tough month ahead.
Rager shared a chart in his posts showing that Bitcoin usually loses up to 6% on its price every September. Now BTC is down by 1.06% and trading at $19,813.28. This dip seemingly indicates a continuing downtrend into September 2022.
The analysts believe that BTC price will be bearish in the short term but might trade between $18K and $48K in the next one year. This means that Bitcoin prices might move sideways from now until an uptrend occurs in April 2024. He also indicated that Bitcoin’s bottom is already in unless the stock breakdown continues.
Bitcoin’s price climbs $20,000 mark. | Source: BTCUSD chart from TradingView.com
Will Upgrade Push Ethereum
Investors were optimistic that the upgrade would push ETH prices up. But the current market situation is shocking them. The second-largest crypto is dipping alongside others.
The current ETH price on August 29 is $1448.10. The crypto shows a price loss of 2.5% in 24 hours. While others show disappointment, Rager believes that the Ethereum Merge is already “Priced In.”
According to the analyst, the event occurred when ETH skyrocketed by 2x 100% in one month.
Extreme Fear in the Crypto Market.
Currently, the Extreme Fear state in the market is also showing clearly in the state of altcoins. Quantify Crypto data shows that altcoins are falling too.
Related Reading: TA: Bitcoin Price Dives Below $20K, Why BTC Is Vulnerable To More Losses
On August 28, Ethereum lost 2.3% in 24 hours, while XRP went down by 3.7%. Others, such as AVAX, lost 10% of their price in 24 hours, while BNB lost 1%. A few cryptos showing positive price movement include Litecoin gaining 2% and PancakeSwap showing 0.18% growth.
Featured image from Pixabay and chart from TradingView.com