Compared to the Terra and Three Arrows Capital crises, the selling pressure on the Bitcoin market is not as severe.
In September, which is typically regarded as unfavorable for bitcoin due to its dismal historical returns, the price of the cryptocurrency may increase by more than 50%.
Double-Bottom BTC Price Followed by $30K?
The contradictory upward signal originates from a likely double-bottom pattern on the longer-timeframe charts of Bitcoin relative to the US dollar. Due to two lows and a switch from a negative to an upside direction, double-bottoms are bullish reversal patterns that resemble the letter W.
The double-bottom concept is partially confirmed by bitcoin‘s collapse below $20,000 in July, rapid recovery toward $25,000, and subsequent return to the $20,000 mark in August. After bouncing back to $25,000, the cryptocurrency would finish the pattern.
In the best-case scenario, a W-shaped price move may be followed by a double-bottom breakout, which would be a rapid rise.
As seen below, the upward objective of a double-bottom is determined by measuring the distance between the pattern’s peak (neckline) and lowest levels and adding the result to the breakout point. In other words, a price increase of perhaps 50%.
To be on the safe side, Samurai Trading Academy’s analysis of common charting patterns shows that double-bottom setups have a modest percentage failure risk of roughly 21.45%.
Market Returns to its Previous State of Utter Terror
During a general decline in price throughout risk-on markets, Bitcoin’s positive turnaround scenario takes place.
BTC’s decline to $20,000 initially began when Federal Reserve Chair Jerome Powell reiterated his hawkish view on inflation at Jackson Hole last week. According to the well-known Fear and Greed index, or F&G, it further caused the sentiment of the Bitcoin market to enter the extreme fear area.
However, according to Philip Swift, the founder of Bitcoin data portal LookIntoBitcoin, the market is not as frightened as it was in June as a result of a significant amount of forced selling at the now-defunct cryptocurrency hedge fund Three Arrows Capital and the stablecoin project Terra.
According to data maintained by Glassnode, the assertion is consistent with Bitcoin investors liquidating their holdings at a $220 million daily average loss.
This includes whales, which are organizations that possess between 1,000 and 10,000 BTC. According to the data site Ecoinometrics, they have been accumulating Bitcoin lately as the price fluctuates around $20,000.
