BTC and ETH Analysis: Should Investors Expect a Bear or Bull Market in September?

Based on TradingView data, BTC/USD traded around $19,800, which indicated continued lackluster performance. As the weekend progressed, the largest cryptocurrency could not break through $20,000 support. Market participants were also reportedly jaded.

Lows After Gloomy Macro Week

Popular trader Cheds noted that the 8-day EMA is a support level, while the September highs are likely to continue to act as resistance. Last week, US stocks suffered a rough week, with the S&P 500 falling 2.7% and the Nasdaq Composite Index losing 3.25%.

Oil prices fell in Europe last week as Russia indicated that it might implement a price cap at the end of the year. Despite this, the implications of this move on prices remain unclear. Supplies of gas to Europe were also disrupted due to technical issues. This issue was initially supposed to be resolved on September 3.

Bitcoin Gives Up Market Share 

Bitcoin bulls were starting to lose ground as the lack of market presence started to show. According to sources, the digital currency’s share of the overall market cap had dropped to its lowest point in almost four years. According to estimates trackers, Bitcoin’s market share was at just 39 percent, which is its lowest since June 2018. On the other hand, the figures from TradingView showed that Bitcoin’s share was at 39.88%.

Earlier, the overall market cap of cryptocurrencies had managed to maintain its 200-week moving average during the bear markets. However, the figures for BTC/USD did not show signs of improvement.

The Crucial $25K Price Point

Despite the volatile market, many investors still believe that Bitcoin will recover. That suggests that most investors are still holding on to cryptocurrency.

Even if the price of Bitcoin eventually drops following the study, it still identifies a potential price point that could end the bear market. According to a report by Kitco, a total Bitcoin recovery could be priced at $25,066.

Despite the current situation, analysts observe that Bitcoin is still in a rut. However, the psychological level of $20,000 has remained intact for some time. That suggests that the decline could continue. On August 19, the price broke the bear flag formation.

As it is, BTC could initiate a possible rally if the bulls can hold above the resistance at $17,567. However, the level to watch is the $17,567 support.

The positive employment data in the US and the current research indicate a possible rally could be positive for Bitcoin. Despite the current crypto winter, investors are still warming up to the cryptocurrency.

Surge or Purge for Ethereum?

Although the price of Ether has made significant gains in the past couple of months, it is still susceptible to downside risks in September. After rallying from its low of $880 in June, it might go lower.

The price of Ether has made significant gains in the past couple of months due to the technical upgrade scheduled for September 15. That would allow it to implement a proof-of-stake protocol.

ETH made impressive gains in the past couple of months. It is still 70% below its record high of almost $5,000 from November 2021. That means that its potential to go lower is still on the cards.

According to data from Deribit, options traders expect the price of Ether to reach $2,200 before the merge takes place. Some even predict that it could go as high as $5,000. However, the enthusiasm surrounding the PoS switch seems to have diminished following the technical upgrade.

This week, the price of Ether tested the lower trendline of its weekly chart. This support level could indicate that the bear flag has started to develop. If the price of Ether breaks below the lower trendline, it could trigger a potential bear flag reversal. That could cause the price to test the upper trendline of the flag at around $2,500. For now, the bear flag profit target for the token is around $540, which is 65% lower than its current price.