Bitcoin is expected to take a huge plunge in September and it might not be easy for investors

Experts are warning customers that the crypto market is at the helm of another crypto market. Bitcoin and all other cryptocurrencies had been surging over the past couple of days, but unfortunately, the Ethereum Merge rally has ended and all digital assets, including BTC, has declined. Bitcoin is currently trading around the US$21k mark, sliding down from its US$24k rally. After experiencing significant gains when the Federal Reserve raised interest rates, the token has lost major parts of its momentum. Experts believe that the largest cryptocurrency might slow down to the US$20,000 level over the past couple of days. You might say Bitcoin is literally dead, or it is on vacation, but there are several factors that pushed BTC to change upward trajectories and head for a slump. Bitcoin's long pause from generating profits is now scaring away even the most avid BTC fanatics.

The leading cryptocurrency has been trading in a relatively tight range between US$20k to US$25k. Experts also propose that recession, rising interest rates, and the ongoing geo-political crises are some of the major triggers that cause stock and crypto markets to slump. Bitcoin fell below the US$20,000 mark twice over the past several weeks. This is a price point that is quite critical for the cryptocurrency as experts debate whether the token will see a further decline in the coming months. Triggered by Bitcoin, Ethereum declined too and is currently trading around the US$1,600 mark. Nevertheless, ETH has experienced more gains over BTC in recent months.

Bitcoin Price is Struggling to Avoid a Major Sell-off Season

Since Bitcoin is trading at around US$21,000, it indicates that BTC has lost over 70% of its value since its all-time highs in November 2021. BTC's actual resistance is the US$23k mark, which is also its 100 hourly simple moving average. Experts believe that if Bitcoin fails to clear the US$23,000 resistance floor and its 100 hourly SMA, its momentum could continue to slow down. The price's major support sits close to US$22,000, but unfortunately, the cryptocurrency is constantly rejecting this floor. Any more losses might send the price down to US$19k once again, and even below that!

Until recently, Bitcoin was considered an important store of value that was immune to fluctuations in the mainstream economic and financial markets. But this is no longer the case. Today, Bitcoin and the broader crypto market are now majorly influenced by economic phenomena that reduce the importance of risk assets like inflation, stock markets, and Fed monetary policy. Experienced Bitcoin traders are no strangers to bearish market conditions and its volatility, but BTC is continually losing investor support because due to its inability to produce fruitful results.

Bottom Line

Given, the crypto market's correlation with the stock market, Bitcoin is expected to witness around of sell-offs. But its drops have also been the result of a combination of the factors that have efficiently affected investor sentiments. Fluctuations are expected, and experts say that they will continue to prevail. Investors who wish to buy Bitcoin should be patient because the conditions in the investment market will likely improve, it might not be soon, but it will definitely happen.