The biggest cryptocurrency by market cap, Bitcoin (BTC), dropped after a chronic interval of consolidation across the $29,000 mark. The failure to maintain this degree has resulted in a decline to $26,000.

Apparently, Bitcoin’s current reversal has coincided with speculations of an imminent bull run, with many believing that the cryptocurrency winter is over and that lower cost ranges is not going to be revisited. 

Nonetheless, this sentiment shifted on July 14th when the US Greenback Index (DXY) initiated a strong rally, surging from 99 factors to its present degree of 103.

Because the DXY started its ascent, Bitcoin’s trajectory turned downward, resulting in a downtrend that induced the cryptocurrency to relinquish a good portion of its 2023 beneficial properties. Conversely, earlier than July, BTC skilled a surge to its yearly excessive of $31,800, whereas the DXY declined.

Regardless of this growth, Glassnode co-founder Yan Allemann means that within the coming months, it is going to be Bitcoin’s flip to reclaim the highlight and assert its dominance as soon as once more.

BTC’s Final Consolidation Section?

Glassnode co-founder Yan Allemann has shared insights on the present market circumstances and predicts an imminent surge in Bitcoin’s worth because the autumn approaches.

DXY’s sturdy uptrend is conversely to BTC’s downtrend. Supply: DXY on

Allemann’s evaluation means that the US Greenback is predicted to succeed in a peak degree of 106, which is able to catalyze a major setting for Bitcoin. 

Traditionally, the inverse correlation between the Greenback and Bitcoin has been noticed, the place a stronger Greenback tends to place downward stress on the cryptocurrency’s value. Conversely, a peak within the Greenback typically coincides with a positive setting for Bitcoin to thrive.

This stated, Allemann believes that Bitcoin is projected to succeed in the $37,000 degree earlier than embarking on a major upward motion in the course of the autumn season. 

This anticipated surge in worth aligns with the patterns noticed in earlier market cycles, the place Bitcoin has skilled notable value rallies in the course of the latter a part of the yr.

It stays to be seen how this narrative unfolds, however one factor is evident: the dynamics between Bitcoin and the US greenback proceed to form the cryptocurrency panorama. 

Historic Information Reveals September Struggles For Bitcoin

Based on data by CoinGlass, August, and September have traditionally offered challenges for Bitcoin, making them infamous months for the cryptocurrency’s efficiency. 

With 10 days remaining till the month-to-month shut, August has already confirmed to be a troublesome month for Bitcoin, experiencing a 12% decline over the previous 30 days. Nonetheless, this downtrend might not come to a halt simply but, as historic information signifies that September may pose extra obstacles to Bitcoin’s value trajectory.

BTC’s September historic declines. Supply: CoinGlass.

Inspecting the chart above, it turns into evident that September has traditionally been a difficult interval for Bitcoin. 

In some situations, the cryptocurrency has witnessed substantial value drops, reaching as excessive as 19%. This means that the approaching month may doubtlessly be characterised by additional downward stress on Bitcoin’s value.

Nonetheless, it is very important notice that historic traits additionally point out the potential for extra modest declines. In 2013, for instance, Bitcoin’s value solely decreased by 1% throughout September, defying the broader damaging sentiment related to the month. 

This demonstrates that whereas September has a historic repute for problem, it doesn’t assure a major downturn for Bitcoin in each occasion.

Whereas Bitcoin has confronted headwinds in August and traditionally in September, it’s value remembering that the cryptocurrency has demonstrated resilience and the power to get better from downturns prior to now. 

Market circumstances, macroeconomic elements, and regulatory developments can all contribute to the value fluctuations of Bitcoin and different cryptocurrencies.

BTC’s downtrend on the day by day chart. Supply: BTCUSDT on

Featured picture from iStock, chart from

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