Bitcoin, in consolidation phase below $20,000, points to bearish trend
The cryptocurrency market closes a month with no shortage of action for digital assets. The general chaos in the stock markets was joined by 'The Merge' of Ethereum, as it generated a large dose of volatility in cryptographic tokens. Despite setting new lows since mid-June and threatening the $17,500 support, Bitcoin ends September almost where it started, around $20,000, although its inability to successfully assault this price level leads experts to believe that there is still going to be a bear market for quite a while.
Bitcoin´s technical aspect is still very complicated. The 'crypto' seems unable to rebound after approaching the annual lows. "We will continue to pay close attention to the abandonment of $17,600. This would confirm the end of the sideways movement in which it has been moving since early summer," stated César Nuez, technical analyst at Bolsamania. "This consolidation movement in a clear downtrend such as the current one may be anticipating a prolongation of the same. Be careful, if it loses these prices it could drop to the $12,300 level. We will not see a sign of strength as long as it keeps trading below $22,720," he added.
Ethereum experienced much more volatility. The second digital currency par excellence will end September with a decline of 16%, after having suffered a 'buy the rumor sell the news' movement caused by the migration to the proof-of-stake consensus model from the previous proof-of-work model. It has now been moving sideways for several sessions after abandoning support at $1,353.
However, the technical analysis indicates that we must be very careful as "everything seems to stipulate that we could end up seeing an extension of the falls in the coming days." "The key support is at $1,200. If it loses it, we could end up seeing an extension of the falls to the level of $880, the annual lows. We will not see even the slightest sign of strength as long as it continues to trade below $1,400," commented Nuez.