Bitcoin’s Downward Trend: What’s Next for the Cryptocurrency Market?

Bitcoin (BTC) started the week on a downtrend, briefly rising above $60,000 before trading in the $58,000 range.

Analysts warn that the situation could worsen, especially due to the presence of a reversal zone that could affect price movements. Also, Bitcoin’s volatility could increase due to the upcoming important events this month.

Bitcoin, Risk of Further Downside

QCP Capital researchers said: Bitcoin is expected to experience further declines. Bitcoin looks set to find strong support at the $54,000 level, after falling 8.6% last month due to the Bank of Japan (BOJ) meltdown.

QCP points to Bitcoin’s historical trend of -4.5% returns in September, suggesting a potential return to around $55,000. In fact, historical performance data paints a grim picture for September. CoinglassAccording to , Bitcoin has recorded an average return of -4.78% this month.

Additionally, Q3 was a tough time for Bitcoin and the overall cryptocurrency market, and September was a month of caution among investors. This approach is reflected in the recent CryptoQuant report. Steady coin inflow declineand believes that investors will be cautious and the downtrend will continue.

However, popular trader Daan Crypto Trades points out the possibility of a short-term bounce due to the new CME gap that opened last week and this weekend.

“A new CME gap formed this weekend around $59,000. Last week’s gap is still partially open, but it has mostly closed as prices move to $61,000,” the trader said. I wrote.

The CME gap occurs when the price of Bitcoin on the Chicago Mercantile Exchange (CME) differs from the market opening after a weekend or holiday. These gaps are often filled and the price tends to return to the gap level.

Bitcoin CME Gap. Source: Daan Crypto

Amid the current market volatility, Bitcoin whales are actively adjusting their portfolios. For example, one whale said: Withdrew 1,100 BTC from Binanceanother whale increased his holdings by purchasing 1000 BTC.

Avinash Shekhar, co-founder of Pi42, said: Upcoming US Economic EventsHe expects additional volatility due to the strong September jobs report, which he says could dampen expectations for looser monetary policy.

“A strong September US jobs report could dampen expectations of a looser monetary policy, which could further increase market volatility. However, there is also a 50% chance of an uptrend,” Shekhar told BeInCrypto.

Bitcoin is currently trading at $58,391, down 0.31% over the last 24 hours.