Can bitcoin beat the Septembear?
Proactive Investors – (BTC) penned an uneventful Tuesday session which saw the world’s largest cryptocurrency bounce off $25,560 lows to hit the midnight bell at $25,792, marking a small daily loss of 0.13%.
Little has changed this morning, with the BTC/USDT pair chugging along at $25,770 at the time of writing.
Bitcoin trading volumes show us what we already knew: There is very little active liquidity in the markets right now, representative of the general lack of enthusiasm in the cryptocurrency sector.
In the latest Reflexivity Research market update, analysts stated: “There is no other way to cut it; the crypto market remains to be in a state of apathy.
“On a multi-year view, there is capitulation in two ways; price and time. Capitulation through sharp price declines often wipes out a large number of market participants; but the ultimate test of conviction for investors is during periods of apathy and capitulation through time/boredom.”
Reflexivity noted that volumes are a good gauge of the extent of market apathy, so it doesn’t bode well to see bitcoin volumes at three-year lows.
Particularly not as we head into September (or Septembear as some like to call it), which is the worst month for crypto prices on record.
Bitcoin’s returns broken down by months
September has had the least number of positive-returning months at just two and is on a 6-year negative-returning streak. pic.twitter.com/4VqZkMubm3
— Will Clemente (@WClementeIII) August 31, 2023
There is still the prospect of the much-vaunted spot-bitcoin exchange-traded fund getting approved by US regulators.
Bitcoin investors have been licking their lips at the prospect, but although the scales tip in approval’s favour, this might not happen until well after September.
In the meantime, the bitcoin bulls’ near-term hurdle is the $26,000 resistance line, with support marked out at $25,500, per Binance’s order book.
(ETH) is showing a propensity for trading in a tight channel, having closed between $1,610 and $1,635 for the past four sessions.
Yesterday was no different, with the ETH/USDT pair adding 0.24% to close at $1,634, before dipping back to $1,631 this morning.
Bitcoin and ether are respectively down 7% and 5.9% on a week-on-week basis.
In the wider altcoin space, Binance’s BNB token, (XRP), (ADA) and (SOL) have lost high single digits to their market capitalisations in the past week.
On the upside, Toncoin (TON) is up nearly 5%.
Global crypto market cap currently stands at $1.04 trillion. Bitcoin dominance has come under pressure, falling close to 49.1% in the past 24 hours, compared to a reading of more than 50.5% this time last week.
