Bitcoin

Strong

Rekt

Coin

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  Bitcoin is still down 60% from its November 2021 all-time high so many traders are wondering if BTC price could crash further in the coming months. 
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 <p>Bitcoin (BTC) is still in a bullish reversal when looking at this year's price chart. BTC price has gained 70% after bottoming out at around $16,800 in November 2022, defying rate hike fears while riding on&nbsp;growing ETF approval optimism.&nbsp;</p>
 <p>However, in recent months, Bitcoin bulls have failed to sustain BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> above $30,000. Therefore, with the "bullish"&nbsp;halving is still over 200 days away, many traders are wondering: is Bitcoin <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> going to cash again in the coming months?&nbsp;</p>
 <p>Let's take a closer look at the possible scenarios as Q3 draws to a close.</p>
 <h2 id="fibonacci-fractal-hints-at-bitcoin-crash-to-21-500">Fibonacci fractal hints at Bitcoin crash to $21,500</h2>
 <p>From a technical standpoint, Bitcoin <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> has stabilized around the 0.236 Fib line of its Fibonacci retracement graph drawn from the $69,000-swing high (the market top) to the $15,900-swing low (the local market bottom).</p>
 <p> This flat BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> action looks very similar to the one witnessed during the 2018 BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> correction.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/4580a034872774b65fdca2dc7424fc7a.webp">
  <figcaption style="text-align: center;">
   <em>BTC/USD weekly price chart. Source: TradingView</em>
  </figcaption>
 </figure>
 <p>In 2018, the BTC/USD pair stabilized around its 0.236 Fib line at around $6,790 for months before dropping toward $3,000 in December. The $3,000-level coincided with what is now a multi-year ascending trendline support (marked as bear market support in the chart above).</p>
 <p>Bitcoin is now halfway repeating 2018 already with <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> flatlining at the 0.236 Fib line. A breakdown from this level meaning BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> will see $21,500 as the next major support level, down 17.75% from current levels.</p>
 <h2 id="strong-dollar-adds-to-bitcoin-s-downside-risks">Strong dollar adds to Bitcoin's downside risks</h2>
 <p>Meanwhile, the U.S. dollar strength index (DXY), which measures the greenback's strength against a pool of top foreign currencies, has reached its highest level since November 2022. </p>
 <p>The index has been negatively correlated with Bitcoin throughout 2023, as shown below.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/4fdb9cbfcda79274983620c04ca83308.webp">
  <figcaption style="text-align: center;">
   <em>BTC/USD vs. DXY weekly price chart. Source: TradingView</em>
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 <p>The dollar's advance has accelerated after the Federal Reserve's rate decision last week, and the DXY is currently painting its 11th consecutive green weekly candle.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/4a6ee593a0310246a3f671c723f31b42.webp">
  <figcaption style="text-align: center;">
   <em>U.S. dollar index weekly performance chart. Source: TradingView</em>
  </figcaption>
 </figure>
 <p>In other words, Bitcoin's upside prospects could be limited if the dollar continues to climb following the DXY&nbsp;golden cross.</p>
 <h2 id="old-bitcoins-being-sold">"Old" Bitcoins being sold?</h2>
 <p>Bitcoin's on-chain metrics are painting a mixed outlook.</p>
 <p>Bitcoin's Coin Day Destroyed (CDD) metric, measuring long-term investors' actions, spiked on Sep. 19, indicating that some long-term BTC holders&nbsp;moved their coins, suggesting possible profit-taking or repositioning.</p>
 <p>Traders should take caution here as most CDD spikes have historically preceded price declines.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/9e0b2e16bbdc9d17ac5fa49b4061f433.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin Coin Day Destroyed. Source: CryptoQuant</em>
  </figcaption>
 </figure>
 <p>On the other hand, Bitcoin reserves across all crypto exchanges continue declining, which hints at&nbsp;increasing hodling behavior among investors.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/1716bdd1a5ad869cd9ea53f42946515b.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin exchanges' BTC reserves. Source: CryptoQuant&nbsp;</em>
  </figcaption>
 </figure>
 <h2 id="what-bitcoin-trading-analysts-are-saying">What Bitcoin trading analysts are saying</h2>
 <p>Bitcoin analysts are also divided over where BTC price may be headed in the months ahead.&nbsp;</p>
 <p>For instance, popular trader Skew argues that the BTC price can hit $30,000 by October, citing a thin Ask liquidity near $27,000, possibly leading to a breakout. </p>
 <p><strong><em>Related:&nbsp;Bitcoin fails to recoup post-Fed losses as $20K BTC price returns to radar</em></strong></p>
 <p>Fellow analyst Rekt Capital, however,&nbsp;doesn't rule out&nbsp;a <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> correction toward $18,000 based on a pre-halving fractal shown below.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/28/beeadd126f9cf5b55e2f9b02a31c796a.webp">
  <figcaption style="text-align: center;">
   <em>BTC/USD weekly price chart. Source: TradingView/Rekt Capital</em>
  </figcaption>
 </figure>
 <p>"History suggests that the next 140 days will be crucial for dollar-cost-averaging in preparation for the Post-Halving parabolic rally," said Rekt Capital, adding: </p>
 <blockquote>
  "If Bitcoin is going to retrace from [the current price levels], it will most likely be during this current 140 day period."
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 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p>
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/is-bitcoin-price-going-to-crash-again-tbt64298.html">https://thebittimes.com/is-bitcoin-price-going-to-crash-again-tbt64298.html</a></p>

Is Bitcoin price going to crash again?

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