- Bitcoin is off to a rocky start in September.
- Amid a recent price dip, investor sentiment has soured, with technicals looking bleak.
- Despite the growing uncertainty, not all analysts are pessimistic.
Bitcoin is not off to a great start in September. The asset started the new month by dipping below $26k after a brief run that peaked above $28.2k on Tuesday, August 29.
As the market lull continues, investors remain uncertain about their next steps. Will the dip continue, or is Bitcoin’s latest drop a buy-the-dip opportunity?
Souring Sentiments and Bleak Technicals
Over the past 24 hours, Bitcoin investor sentiment has turned from neutral to fear, as highlighted by the Bitcoin Fear and Greed Index.
Source: Twitter
The souring sentiment comes as Bitcoin has erased gains spurred by Grayscale’s legal win over the SEC to trade at $25.8k at the time of writing. Amid Bitcoin’s lackluster price moves, on Friday, September 1, Reflexivity Research co-founder Will Clemente warned that the technicals were also not looking good.
According to Clemente, in addition to rejecting below the 200 daily and weekly moving averages (MAs), Bitcoin’s price had also rejected below the short-term holder cost basis. “Not a great look — Bulls want to see these levels reclaimed,” he cautioned.
But despite the plummeting market sentiment and the bleak technicals, not all analysts are pessimistic. Some reckon that now is as great a time as any to buy.
A Buying Opportunity Still?
In a tweet on September 1, prominent price action trader HTL-NL expressed optimism about Bitcoin’s price action. He opined that the asset appeared at the bottom of a long-range, viewing it as a re-accumulation.
Similarly, in a September 1 DeFi on Target report, Matrixport Head of Research Markus Thielen asserted that Bitcoin’s recent dip presented an excellent opportunity for “smart investors to buy.” Thielen argues that the $25k price level should act as the floor for retracement, as BlackRock filed for their Bitcoin ETF at this level.
“We believe any dip near that level should be bought,” he added.
HTL-NL and Thielen were not alone in their sentiments. Speaking with DailyCoin, CoinShares Head of Research James Butterfill contended that the fundamentals currently looked positive for Bitcoin despite the SEC’s efforts to delay the approval of a spot Bitcoin ETF.
"The grayscale ruling, for the longer term, is a very positive outcome, greatly increasing the chances of a spot ETF being approved in the US within the next 6 months. This coupled with the likeliness that the FED will stop hiking rate this September, should, from a fundamentals perspective at least, be price supportive," Butterfill noted.
On the Flipside
- September has historically not been a good month for Bitcoin.
- Prominent analyst Ali Martinez has noted that Bitcoin lacks strong support below $25,400. According to the analyst, a drop below this level could see the asset trading at around $23,340.
Why This Matters
Bitcoin’s price action tends to dictate the price action of the broader crypto market. As such, the asset’s recent dip shrouds the market with uncertainty going into September.
Read this to learn about Bitcoin’s track record in September:
Worst to Come? Why Bitcoin Holders Should Brace for September
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