The red of the ninth month – The price of Bitcoin (BTC) is losing important bullish supports, as historical data seems to point to more declines to come.
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A PCE in level up and a bear FED
Bitcoin price rises as high as $21,866 on Bitfinex today, August 26, 2022, before dipping below $21,000. Cryptocurrency trades at $20,684 at the time of writing this article. Its price is currently recording a daily loss of 4.25%.
The trader Michaël van de Poppe had anticipated the day before, a bearish correction of Bitcoin before the important events of today.
In fact, can the markets really attribute the declines to the release of the Personal Consumption Expenditure (PCE) Price Index data, and to the intervention of the President of the United States Federal Reserve, Jerome Powell?
The Material Indicators platform shared a chart showing Bitcoin price momentum to its intraday high, following the release of PCE data, which was “ better than expected “.
Nevertheless, the words of Jerome Powell, who once again confirmed that the FED would continue to tighten the economy to control inflation, seem to have exercised strong downward pressure on the Bitcoin price.
A technical decline for the price of Bitcoin
By falling below $21,000, the price of Bitcoin is undoubtedly losing for the moment the bullish support line, above which it has been trading since August 19th.
Michaël van de Poppe hoped that Bitcoin would hold above $21,000 “despite today’s fake-outs”.
The markets unfortunately decided otherwise, and Bitcoin even lost its support around $20,780. Today’s fall can also have a relatively simple technical explanation, unrelated to the data on the PCE or the words of Jerome Powell.
After yet another attack from the resistance zone around $21,850, the rejection ended up getting the better of support at $20,780.
Michaël van de Poppe believed that if Bitcoin managed to break $21,800, the price of Bitcoin could accelerate towards $23,000 and above.
September, you have to go below $20,000
Will the price of Bitcoin manage to recover the bar during this weekend, and go back above $21,000?
Twitter user CrypTomas shared the chart below which, based on patterns since early 2021, appears to predict another drop that could bring back Bitcoin price below $20,000.
Historical data unfortunately does not support a technical rebound towards $30,000 in the short term, but rather announces this return below $20,000, if Bitcoin does not move away from this level in the next few days. .
The end of the month is approaching and September seems to be that of the bears. In fact, statistics show that September of the last five years have been systematically in the redwith a minimum monthly loss of 5.58%.
Sometimes it grows for the price of Bitcoin, sometimes it fades! The price of Bitcoin was technically bullish in the very short term, before today’s events. Will the bulls have the strength to erase today’s losses, to get the markets back on track this weekend?
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