Red September? Bitcoin Risks Sliding to $100K After 6% Monthly Drop

This is simply a regular investigation by CoinDesk expert and Chartered Market Technician Omkar Godbole.

Bitcoin (BTC) has breached cardinal enactment levels successful a motion of expanding bearish momentum that suggests a hazard of a descent to $100,000.

The starring cryptocurrency by marketplace worth fell 6.5% successful August, ending the four-month winning streak arsenic the U.S.-listed spot exchange-traded funds (ETFs) bled $751 million, according to information root SoSoValue.

The caller terms driblet saw bitcoin interruption beneath respective cardinal enactment levels, including the Ichimoku cloud, and the 50-day and 100-day elemental moving averages (SMAs). It besides pierced important horizontal enactment zones formed by the May precocious of $111,965 and the December precocious of $109,364, according to the regular illustration sourced from TradingView.

These breakdowns underscore increasing marketplace weakness, confirming a bearish displacement successful cardinal momentum indicators specified arsenic the Guppy Multiple Moving Average (GMMA) and the MACD histogram.

The short-term exponential moving mean (EMA) set of the GMMA (green) has crossed beneath the longer-term set (red), signaling a wide bearish momentum shift. Meanwhile, the play MACD histogram has dropped beneath zero, indicating a modulation from a bullish to a bearish trend.

Together, these signals bespeak a likelihood of a sustained sell-off, perchance driving the terms down to the 200-day elemental moving mean (SMA) astatine $101,366, and perchance to the $100,000 mark.

The antagonistic method outlook aligns with seasonal trends, which amusement September historically arsenic a bearish period for bitcoin. Since 2013, BTC has delivered an mean instrumentality of -3.49%, closing little successful 8 of the past 12 September months, according to information from Coinglass.

As for bulls, overcoming the little precocious of $113,510 acceptable connected Aug. 28 is important to negating the bearish outlook.

• Support: $105,240 (the 38.2% Fib retracement of the April-August rally), $101,366 (the 200-day SMA), $100,000.
• Resistance: $110,756 (the little extremity of the Ichimoku cloud), $113,510 (the little high), $115,938 (the 50-day SMA).