Bitcoin
BTC$43 287.80

2.05%

Ethereum
ETH$3 010.99

3.55%

Cardano
ADA$2.27

-3.89%

Tether
USDT$1.000700

-0.08%

Binance Coin
BNB$346.18

-1.47%

XRP
XRP$0.947086

0.59%

Bitcoin (BTC) Enters Another Bearish Autumn?


#Bitcoin

About a week ago, when Bitcoin (BTC) was still hitting its head against the resistance at $12,500, numerous cryptocurrency experts had been preaching about the almost inevitable breakout to $14,000 that should have broken the so-called “$12K spell,” under which the dominant cryptocurrency has been for nearly three years.

The September blue of Bitcoin


But contrary to their expectations, Bitcoin has had the second-biggest flash crash of the year that bears a resemblance, in terms of its intensity, with the March meltdown. It appears that the Bart Simpson pattern, which we had distinguished in one of our previous BTC price prediction articles, is now in its finalization stage after the price has made yet another futile attempt at pushing past $12,500.

3-month BTC price chart

Considering that for the past two years, the fall has been a down season for Bitcoin: in 2018, BTC got devalued by 55% in the period from September until December, and by 41.3% over the same period in 2019, as shown on the monthly chart below.

1-month BTC/USDT chart

Some might argue that September of 2018 was the month when the infamous bull market had been given a spark, but that occurred within the context of a bubble, whereas now we are witnessing a natural uptrend development with its upswings and troughs. Therefore, the latest 20% drop on the monthly time frame, instigated by a significant pullback across traditional markets, give us enough reason to believe that sellers will have the upper hand in the largest cryptocurrency market for the next two to three months with the high likelihood of BTC descending to the area between $8000 and $9000 at a certain point in time, thus increasing the overall losses for that period to 34%.

A regular pullback or a Minsky Moment


But even such seemingly big losses would still keep Bitcoin within the bullish framework since even a drop to $8100 would keep the price within the confines of the rising channel as it would form a lower high, as well as the symmetrical triangle pattern, with further prospects of breaking it to the upside.

However, there are two factors, namely, the expected second wave of COVID-19 pandemic and the U.S. presidential elections, that could either exacerbate the bearish pressure or tip the scales in the opposite direction. Many prominent analysts also talk about the Minsky Moment in traditional markets - an abrupt market collapse following the unsustainable bullish period, which, in our case, was caused by the first stimulus package from the Federal Reserve.

To summarize, while Bitcoin draws a bullish picture on the macro scale, there are piling evidence of a looming deeper pullback to the $8,000 region in the near future.

1-day BTC/USDT chart

On the daily time frame, the price action has been stalling near the psychological level at $10,000, but the sinking lower wicks on daily candles suggest that the bears are drilling through this support level, so in the next few days, traders should expect a drop to $9,600, the level that happens to coincide with the current position of the 200-period EMA and the 0.382 level on the Fibonacci retracement grid. 

Author: Alex Paulson for Crypto-Rating.com

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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 82.4% 35 $43 287.80 2.05% -8.49% $814 966 927 933 $32 680 812 854
2 Ethereum (ETH) ETH Ethereum predictions 72.8% 49 $3 010.99 3.55% -9.89% $354 338 554 947 $21 802 081 769
3 Cardano (ADA) ADA Cardano predictions 60% 80 $2.27 -3.89% -2.90% $72 613 126 112 $5 577 581 472
4 Tether (USDT) USDT Tether predictions 94% 1 $1.000700 -0.08% -0.03% $68 590 944 713 $79 368 686 289
5 Binance Coin (BNB) BNB Binance Coin predictions 66.8% 69 $346.18 -1.47% -14.62% $58 205 321 046 $1 873 086 247
6 XRP (XRP) XRP XRP predictions 70.4% 52 $0.947086 0.59% -10.97% $44 245 636 148 $3 503 428 805
7 Solana (SOL) SOL Solana predictions 66.8% 72 $137.06 -1.92% -13.76% $40 744 147 032 $2 455 458 712
8 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $1.000483 -0.05% -0.03% $31 006 963 781 $3 830 168 851
9 Polkadot (DOT) DOT Polkadot predictions 67.6% 69 $29.44 -3.25% -12.15% $29 070 856 010 $2 592 379 334
10 Dogecoin (DOGE) DOGE Dogecoin predictions 64% 77 $0.205929 -0.86% -12.64% $27 068 780 737 $1 515 174 486
11 Avalanche (AVAX) AVAX Avalanche predictions 56.8% 87 $68.09 -3.41% -4.08% $14 998 710 235 $1 234 318 562
12 Terra (LUNA) LUNA Terra predictions 68.4% 59 $36.34 -4.22% 4.95% $14 536 281 852 $1 625 437 616
13 UniSwap (UNI) UNI UniSwap predictions 64.8% 74 $23.42 20.32% -1.22% $14 325 624 849 $1 167 934 535
14 Binance USD (BUSD) BUSD Binance USD predictions 92.4% 1 $1.000303 -0.07% -0.05% $13 693 477 670 $5 597 328 153
15 Chainlink (LINK) LINK Chainlink predictions 67.6% 70 $25.06 10.18% -9.97% $11 403 176 618 $2 018 605 273

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