Bitcoin Faces Bearish Pressure At Week's Start, But Further Upswing To $9K Still Expected

It appears September hasn’t been the most favorable month for Bitcoin. Historically, the month of September usually sees Bitcoin in a bearish stage. From time past the market has seen September come with a bearish force that has kept the price of Bitcoin range-bound in lower levels. Although the dip is not usually the deepest, market participants may want to reduce their expectations for Bitcoin in September.

BTCUSD Chart by TradingView

September might not see Bitcoin shining green lights

Last year and the year before saw prices slightly retrace downwards, and this year might not be so different. As a market observer, Michaël van de Poppe asserted, “Bitcoin doesn’t like September at all. Are we going to repeat and have a corrective month across markets, before the continuation of the bull cycle?”.

As if to answer the above question, the Bitcoin Stock to Flow model creator PlanB had taken to Twitter a while back to note that September might indeed come with a bearish wave. However, October is poised to take the market upwards, and December, as asserted by PlanB could see Bitcoin finally hit $100,000.

“September $43K floor / worst case is not a typo. The small dip is caused by the data. However, it is a worst-case estimate, my base case is of course the S2F estimate. Also, October $63K worst-case /floor is more in line again. So Sep is just a data blip, nothing to worry about.” –PlanB.

Segwit adoption causes Bitcoin fees to drop significantly

Meanwhile, PlanB is also bringing new information concerning fee charges to the market. The analyst claims that an exchange is behind the Segwit transactions.

“Bitcoin fees (blue line) are low since this summer. This is not because of low transactions (low demand for blockspace), but because a large exchange (I will not say who) finally implemented segwit transactions. Segwit adoption (yellow line) is now ~80%. Expect fees to stay low.”

Many have quizzed the analyst on whether the adoption of Segwit may have been behind Bitcoin’s fall from $60,000. To this, he responded by saying; 

“I guess the drop from 60k to 30k was caused by China mining ban and the decline in hashrate (that is now coming back online). However, some could see low fees as low demand for btc blockspace / txs, which would not be good .. but that is not the case IMO.”