In the volatile cryptocurrency market, large price swings are nothing new for Bitcoin (BTC). Market watchers constantly watch BTC’s potential decline below the $25,000 threshold as September draws near.
🚀 Exciting times in the world of #cryptocurrency! With growing mainstream adoption and innovative blockchain projects, it's clear that digital currencies are here to stay. Remember, while the market can be volatile, learning and staying informed are key to navigating this new… pic.twitter.com/3cwSqns7v5
— eriltili1978643 (@eriltili1978643) August 8, 2023
History has shown, however, that September’s difficulties frequently lay the way for a comeback in October, with enormous rallies that renew investor optimism.
Potential For BTC To Drop Below $25,000 Before A Promising October
It is clear from looking at Bitcoin’s past September performance that the most well-known cryptocurrency in the world has faced difficulties during the month.
Market saying it's not ready to drop just yet. We lost the consolidation that sent us up in to resistance, deviated below then reclaimed, now looking to challenge nearby liquidity levels marked with X's. I'd be watching PA at either X for potential reversal. pic.twitter.com/qBCwy0Exmh
— Crypto Chase (@Crypto_Chase) July 8, 2022
BTC experienced drops of up to 13% in September of last year. The sustainability of Bitcoin’s positive momentum has surely been questioned by traders and investors due to this negative trend.
Bitcoin Bullish Divergence
Trader Ali Martinez drew attention to a crucial development when BTC fell from $32,000 to $29,000: the quantity of new Bitcoin addresses was continuously increasing.
This intriguing discrepancy between price and network expansion sheds light on the long-term upward trend that BTC may exhibit.
— Crypto Rover (@rovercrc) August 7, 2023
The number of newly established Bitcoin addresses has increased even while the price of bitcoin has been on a downward trend.
This divergence is significant since it indicates that the network’s expansion is still strong despite temporary price variations. It represents an increase in interest in the adoption and use of Bitcoin, which in turn supports the idea of a long-term rise that is both stable and sustainable.
On the other hand, Bitcoin is still stuck between $29,200 and $28,900, a pattern that has lasted since the beginning of August. BTC is currently trading at $28,960, down 0.5% from the previous day. As of the time of writing.