Bitcoin’s Price Tumble: A September Rally in the Making to $29,000?

• Bitcoin registers an 11% weekly dip, sparking concerns of an incoming bear market.
• The U.S. SEC is anticipated to give an update on spot ETF applications, a decision that could redefine Bitcoin’s course.

Dynamics of Bitcoin’s Recent Price Shift

SEC’s September Update: A Beacon of Hope for Bitcoin? For those observing the tumultuous journey of Bitcoin, its recent trajectory might have been a cause for concern. Hovering around the $30,000 benchmark for some time, the cryptocurrency experienced a substantial 11% decline within a week. This descent on August 18, 2023, had a cascading effect, reducing the number of individual Bitcoin holders reaping profits. This begs the question: Is the crypto realm tilting toward a bear market?

Yet, hope dangles on a string. Amidst the prevailing uncertainty, Bitcoin retains support levels at $25,000 and further at $21,500. This scenario might induce traders to grapple with Fear, Uncertainty, and Doubt (FUD), especially when contemplating short trades. However, there’s a potential twist in the tale. From September 1 to September 6, 2023, all eyes will be on the U.S. Securities and Exchange Commission (SEC). A decision or update regarding spot ETF applications from influential entities like Blackrock and Wisdomtree could shift the winds in Bitcoin’s favor.

Macro Influences and Bitcoin’s Momentary Stumble Apart from the anticipation around the spot ETF applications, other macroeconomic forces have left their mark on Bitcoin. One significant event is the SpaceX’s strategic decision to offload Bitcoin assets, a move amounting to a whopping $373 million. This, not so coincidentally, transpired alongside a notable drop in indices like the Nasdaq Composite and the S&P 500.

The aftermath? A considerable segment of the trader community confronted diminished profits or edged into the territory of unrealized losses. This assertion is validated by data from Glassnode, which shows a decline in the 7-day moving average of BTC addresses, plummeting to a one-month low of 32,506,617 addresses.

📉 #Bitcoin $BTC Number of Addresses in Profit (7d MA) just reached a 1-month low of 32,506,617.637

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View metric:https://t.co/qLnvDYVzPt pic.twitter.com/DPTIsTnPtH

— glassnode alerts (@glassnodealerts) August 19, 2023

All these factors interplay, setting the stage for an intriguing September for Bitcoin and its ardent followers.