The Bitcoin price has been relatively stagnant in recent weeks, but a surge in volatility occurred within the past 24 hours. Despite this, sentiment surrounding the cryptocurrency has turned negative, leading many traders to anticipate another test of critical support.
As of now, Bitcoin (BTC) is trading at $26,200, showing a 3% profit in the past 24 hours. Last week, the cryptocurrency recorded a 2% profit, making it the best performer among the top 10 cryptocurrencies by market capitalization.
According to trading desk QCP Capital, the crypto market is approaching its final quarter, which will be marked by a significant option expiration event on September 29th. These events often result in high volatility as major players hedge their positions and roll out contracts for future expiration dates. QCP Capital also highlights the confluence between macroeconomic forces and the Elliot Wave count in late September, indicating bearish price action. The Elliot Wave indicator analyzes market psychology and investor sentiment to provide a price trajectory for an asset.
QCP Capital predicts that Bitcoin will likely correct to around $23,000 to complete the trajectory corresponding with a Wave B, based on the Elliot Wave theory. The trading desk stated, “Based on both blueprints, we expect an imminent final decline to close out the quarter at the lows.” They also mention upcoming bearish events on the crypto and macro events calendar, which are expected to turn neutral only from mid-October onwards.
Several other bearish factors align with this potential price action, including the Mt. Gox Bitcoin unlock and the events surrounding the failed crypto exchange FTX. QCP Capital suggests that this bearish trajectory could extend into mid-October.
If Bitcoin follows this trajectory and reaches the projected bottom, it could mark the end of a prolonged downturn and potentially initiate a recovery. QCP Capital remains optimistic for late 2023 and 2024, stating, “While our theory implies a bottom soon after the supermoon early next month, we think the true bottom will come in mid-late October when the bad news cycle has run its course. We nonetheless remain bullish following that, into year-end and Q1 next year.”
It is important to note that these predictions and analyses are based on market indicators and theories, and the future movement of Bitcoin remains uncertain.
Sources:
– QCP Capital: https://www.newsbtc.com/news/bitcoin/bitcoin-price-imminent-crash-into-23000-level-these-are-the-bearish-catalysts/(https://qcp.capital/market-updates/market-update-12-sep-23/)
– Elliot Wave Theory: https://www.newsbtc.com/news/bitcoin/bitcoin-price-imminent-crash-into-23000-level-these-are-the-bearish-catalysts/(https://www.investopedia.com/articles/technical/111401.asp)
– Tradingview BTCUSDT chart: https://www.newsbtc.com/news/bitcoin/bitcoin-price-imminent-crash-into-23000-level-these-are-the-bearish-catalysts/(https://www.tradingview.com/chart/?symbol=BINANCE%3ABTCUSDT)
– Unsplash (cover image)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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