NEW DELHI:The original cryptocurrency, Bitcoin, failed to break the curse of September, and delivered a negative return for the fifth straight year for the 30-day period last month. The crypto asset has been on a losing streak in terms of monthly performance in September since 2017.
While there has been no particular reason why Bitcoin performs poorly in September, experts had believed that it would be able to break the jinx this time around on the back of momentum built over the past few months.
After three months of negative returns, Bitcoin had logged cumulative gains of over 30% during July and August 2021.
In September, the digital asset opened at around $48,000 and went on to hit a high of over the $52,000 level in the initial days. However, sentiment soured and Bitcoin slipped below $40,000, and it eventually settled at $43,859 for the month. Return for September stood at -7.34%.
Bitcoin witnessed major drops on three different occasions during September. The first came immediately after El Salvador officially adopted Bitcoin as legal tender, the second fall followed the news of Chinese property developer Evergrande’s crisis out and the third was when China announced a ban on crypto dealings.
“Having fallen below $40,000 and touching $39,000 after breaking the $50,000 resistance, many experts are hoping that the coin will surprise us by upending the conventional trends, given that the market is rallying with an all-time high number of investors,” CoinDCX spokesperson said.
According to experts, the asset is currently trending towards the $44,500 mark, which is its next stiff resistance, and if the break happens, a rally might happen. Bitcoin also remains in a consolidation phase as of now and will be so, until the price does not beat the $45,000 mark.
Nirmal Ranga, chief revenue officer of ZebPay, believes that while the asset does look attractive at these levels, the macroeconomic developments that have taken place in the ecosystem have created uncertainty, which has favored the bears significantly.
“Having said that, we think that this will be a short-term impact, and in October, we expect bitcoin to see attractive volumes and growth since accumulation is likely at these levels. Volumes have started to see a recovery, which is necessary for prices to hold,” Ranga added.
Bitcoin last month started on a good note, touching a high of $52,944. The asset faced stiff resistance at higher levels and witnessed a sharp correction by almost 25% making the monthly low of $39,600.
According to Zebpay, the asset is trading in an ‘Ascending Triangle’ and is taking multiple support around the $40,000 mark.
“If the bulls manage to hold the support, Bitcoin might resume its move higher and a relief rally can be expected. The asset has strong resistance of around $45,000-46,500. If the breakout occurs above these levels, then the prices may rally above the $50k mark. On the contrary, the break or close below the recent low, the bears will take the lead and the prices could slide to $37,000,” Ranga said.
On the upside, Bitcoin has resistance at $46,500, followed by $53,000. Supports are at $40,000 and $37,000.
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