Arrival of The Bear's Birth Month || A Dip Confirmed from $57k to $53k in 2 hours

The dip, the dip from $57k to $53k. It was expected. Afterall we are in the BloodBath month where coins fall due to the decline of bitcoin this month. It dropped unceasingly reminding me of a song I listened to this morning which says Wake me up when September ends. The liquidations and false correction in the market is alarming.

Now, let's see what events transpired today being 6th of September. FED was to have a meeting today and as the case may be, the meeting ended with some optimism though not a final decision. Bitcoin price is currently bearish and the pressure in the market is just too much that it dropped the total market capitalization below $2 Trillion.

The crypto fear and greed index is steadily increasing to extreme fear at 22. Just imagine how bearish everyone is but still, there are lots of liquidations in the market as the price of bitcoin drops unexpectedly when there's so much optimism. Bitcoin is currently trading at $53900 that's at the time of publishing this post.

There have been series of transferred assets and withdrawals from the market. As of this morning, bitcoin of about $728M was withdrawn from exchanges but despite these withdrawals and transfers which seems to be done on a daily basis, bitcoin still has 100 to 1k addresses holding the asset. What about the dip and FED meeting?

The meeting held today brought about a trending speech by the Federal Reserve Governor. His speech indicates that the Federal Reserve is expected to cut interest rates by 50 basis point in September which means they'll be a cut in interest rate which will impact the market positively to an extent leading to surges but some analysts doubt that there'll be an increase in the market if rate is cut because of the issues or matters arising.

The governor indicated in his speech that the time is right to begin in lowering the interest rates at the upcoming meeting. He also pointed out to the fact that the recent data in there labour market shows a slowdown and the rate would be cut early if conditions are appropriate. Issues like the latest US unemployment rate has affected the economy and the market in general because of the value which the country holds in currency.

There has been a debate between the prediction of the market in terms of 25 basis cut and 50 basis cut. An analyst named Rosenberg suggested that a 50 basis rate cut might signal an economic worry in the ecosystem rather than reassuring the markets of a recession prevention. His comment reflects the Federal Reserve's Monetary policy and the economy in general.

A significant cut in the rate could lead to increased market volatility and economic weaknesses. That's why we have been waiting and anticipating their decisions as it could affect the market and the economic stability. It would play an important role in determining the direction of the U.S economy. Now let's switch to the dip that we are concerned about.

There's every possibility that bitcoin will drop to $52k. If it fails to hold the level it is now, it will drop to $49k putting its long-term bullish structure under the extreme bear market. If you look at what happened September, 2024, you'll notice that bitcoin fell from $52k to $39k. Bitcoin may retest the 50 weekly EMA if it drops to $49k as it hasn't closed a weekly candlestick below 50-weekly EMA.

Last bull run which happened 2021, there was a time like this in the market where bitcoin dipped to $39k after attaining a high of $52k. It happened non the 6th of September and the same thing happened today being 6th September, 2024 but in a different phase.

September has already begun showing red and bearish movement but the bulls can't escape because of how hot the bears are. We may see low of $49k. Let's just place trades wisely to avoid losses. It's September. Wake me up when September Ends said one analyst which is also inscribed in a song.

A similar retest is occurring and if the price action is to repeat itself as did last bull run, another sweep may occur before the bull cycle takes turn up till January.

Sreenshots are from my bybit and telegram app

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have