On September 1, a new bitcoin was opened monthly with great optimism. The monthly light in August closed above $ 11,500 for the first time since the 2017 record. But in the short term, traders are wary of the sudden sell-off in the cryptocurrency market.

Over the past 24 hours, the price of Bitcoin (BTC) has decreased by more than 6%, while the price of Ether (ETH) has decreased by 10%. Sentiment towards the short-term trend in the cryptocurrency market remains mixed after the failure.

Some traders are expecting the bitcoin price to fall to the $ 11,000 support level. Dropping below $ 10,500 and stabilizing below will increase the odds for downside. Traders generally see $ 11,000 and $ 11,700 as significant Bitcoin levels. Technically speaking, if Bitcoin stays below $ 11,000 for an extended period, that could indicate a bearish pullback. If BTC remains stable above $ 11,700, traders say it will increase its chances of growth.

DonAlt, Bitcoin trader under a pseudonym, said the trend with BTC is still uncertain. To confirm which trend, BTC must first close above $ 11,700 or below $ 11,000 to uncover the clear bear and bullish scenarios:

“Nothing has been lost to the Bulls yet, the end has crossed $ 11,770, and I expected there to be a mega giant. The close is much lower and sales in the $ 11,700 range will be very attractive. If you lose $ 11,000, it is time for a macro-level correction, as long as it continues.” Provided we go further. ”

A bearish scenario for Bitcoin in the short term
There are three factors that could cause the Bitcoin price to drop during the month of September. First, the US dollar has begun to recover at a significant level of support. Second, September has historically been slow for Bitcoin. Third, fixation after a high spike is typical for BTC.

Ahead of the steep decline in Bitcoin’s price on September 2, the bulls expected a sharp decline. Over the past five days, Bitcoin has appreciated nearly 8% against the US dollar, while, for example, Ether has shown a much steeper rally and gained 30%.

The primary downside scenario for Bitcoin is a continued drop to $ 11,000, decline from support, and a drop to a $ 9,700 gap in the CME. For this to happen, Bitcoin must first break its support range below $ 11,000, which provided a solid basis for the recent rally.

A crypto trader known as SalsaTekila said they see around $ 10,500 as major support to continue the uptrend. Given that many traders see between $ 10,500 and $ 11,000 as an important support area, losing a support zone can trigger a deep pullback.

The most significant bullish case for Bitcoin
An abundance of potential catalysts could also support Bitcoin’s momentum. In recent months, several network indicators have indicated a positive trend for BTC in the medium term. Indicators such as HODLing activity, net unrealized gains / losses, shrinking foreign exchange reserves and increased institutional demand are supporting a long-term bullish BTC exchange rate.

In the short to medium term, the optimistic case for Bitcoin is continued growth to historic highs. Historically, BTC has remained unchanged from September to October. Every September monthly light since 2017 is closed by a red light.

For example, the price of Bitcoin continued to rise to $ 20,000 during 2017. The monthly light for Bitcoin closed in red in September 2017, but the upward trend continued in the last quarter of the year. Therefore, even though the monthly candlestick in September closes like a red light this year, there is a strong possibility of a resumption of the trend.

A trader known as the “Byzantine General” said that the bullish market trend has not been broken. Bitcoin and Ether both showed signs of excessive gains before withdrawing. Until BTC breaks below the support range of $ 10500-11000, the bullish market structure remains strong. The therapist said:

“This is how the beef markets work. Nobody can come to terms. You have people on both sides of the trade. When everyone agrees that it seems the market is bullish, that’s when it usually peaks. We don’t have that now.”

Despite the short-term correction in bitcoin, researchers at Glasnode market analysis said that not many long-term investors were selling bitcoin as bitcoin fell below $ 11,200. The data suggests that this could be a temporary setback to push long points in the futures market.

Source: CoinTelegraph