The crypto market once again fell below the $1 trillion cap, driven by a loss in the main cryptocurrency Bitcoin (BTC) during the last several days, despite a minor rebound in Bitcoin’s price over the past twenty-four hours.
In the meanwhile, the Bitcoin-adjusted SOPR (Spent Output Profit Ratio) chart indicates that market players are cashing out during bad market rallies in order to locate a better entry position, per Glassnode data from the end of August. Inflationary concerns and the Federal Reserve’s (Fed) strong stance have fueled fear in the wider markets, resulting in more aggressive selling.
Notably, BTC seasonality points to a negative September, but this has traditionally been followed by a historically green October; yet, BTC is already down 5% in September. If the seasonality of Bitcoin’s price over the last nine years is any indicator, this fear may be creating a strong buying opportunity.
The relative strength index (RSI) suggests that a short-term increase is possible for the cryptocurrency with the largest market capitalization.
Specifically, the RSI is displaying a bullish divergence, which happens when the price of an underlying asset makes a lower low and the RSI indicator reaches a higher high, frequently indicating an upcoming bullish trend.
On the other hand, anxiety seems to be ruling the wider markets, since the European energy crisis might possibly spread to the financial sector and eventually the world economy. If history repeats itself, the short-term bullish surge in BTC might occur despite the negative sentiment.
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