One can safely assume that Bitcoin would be facing yet another week of huge announcements at the macro level- after the lowest weekly close that took place in July. After several days of losses suffered by the cryptocurrency, which followed the inflation data put forward by the United States, several currencies like the Bitcoin exchange, altcoins, and even risk assets failed to recover from this point.
It does imply that the largest cryptocurrency doesn’t seem to be capable of flipping a sum of $20,000 to bring in convincing support, and as the third full week of September comes to play, the danger is again at a point that could be served as the resistance zone.
Bitcoin Could Be In Deep Trouble Over the Coming Weeks
Needless to say, the market bulls will have a lot to function with- as the next few days would see the Federal Reserve considering the next key rate hike– something that would definitely affect the market far beyond just the sentiment. Also as an addition, the aftermath of the Merge by Ethereum is here to play, while Mt. Gox, a defunct exchange, has already offered reimbursement to creditors- which could also bring in another potential cloud to the entire price landscape of Bitcoin.
Primarily, the main event for the week would be in the form of the decision of the Federal Reserve on several key rates of interest. After the print for the CPI came in August, the Feds would definitely see some pressure to respond.
The last week managed to see some tailwinds that had stacked up against Bitcoin, which led to the price action of the cryptocurrency going down in kind. The exchange managed to lose over $2,000 in just a single weekly candle, where it closed below $20,000 in what has been considered to be the lowest such close since July- as data from Cointelegraph Markets Pro and TradingView highlight.