On Tuesday, cryptocurrencies like Bitcoin and others rose from a multi-month low. However, when seasonal September worries take hold, the negative trend may be too strong for cryptocurrencies, forcing investors to wonder “Is Bitcoin a Good Investment?“
Bitcoin’s price has been largely unchanged over the last 24 hours above $25,800, but it has recovered from a significant selloff that briefly drove it below $25,000 on Monday — the lowest levels since mid-June — in the absence of any big triggers. Bitcoin is susceptible at critical technical levels and below the $26,000 barrier, which has supported the major digital assets for much of the past month.
Samer Hasn, an analyst with broker XS.com, claims that the declines in cryptocurrency prices took place as negative market sentiment remained. Since large transfers to cryptocurrency exchanges often result from a desire to sell or swap cryptocurrencies, they are typically viewed as a bad sign, signalling that traders are uneasy about the enormous amounts of digital assets that are moving from wallets to exchanges.
With the cryptocurrency seeing its lowest volatility ever this summer and the lowest trading volumes in August since 2019, there doesn’t seem to be any relief from Bitcoin‘s extraordinary trading slowness until the September series. September is frequently the worst month of the year for Bitcoin, which has fallen for six consecutive September, much like the Dow Jones Industrial Average and the S&P 500.
The price fluctuation on Monday may only be the start of the fierce changes traders have been preparing for this week due to macroeconomic considerations. The managing partner of technical research firm Fairlead Strategies, Katie Stockton, claims that Bitcoin is still vulnerable to the $25,200 technical price level, with downside risks as high as $23,200 if a more pronounced decline occurs.
Stockton claims that there are short-term oversold conditions, but they could be unsuccessful in halting downward momentum. Reduced intermediate-term momentum, which would make a long-term return for Bitcoin challenging, is what he would defer to.
Is Bitcoin a good investment? This is a question that several investors have recently raised.
The second-largest cryptocurrency by market cap, which is based on Ether, was down less than 1% at $1,580. Differently from larger tokens, or cryptocurrencies, Cardano increased by less than 1%, whereas Polygon decreased by 2%. Dogecoin and Shiba Inu both saw little gains of under 1%.