Featured image - Bitcoin Price September 2018

Bitcoin Price September and what more. Bitcoin has been on a rollercoaster this past year. The price of bitcoin went from beginning 2018 on a high of R225,000 in January; to plummeting to around R90,000 in August. Even though bitcoin is currently trading at half the price it was worth in January, the cryptocurrency has managed to keep it’s head above water, floating around the price of R95,000.

Bullish Reversal

Bitcoin on international markets went through a bullish reversal on September 21st. Correspondingly, a number of different altcoins experienced steep gains. Bitcoin was going for $6,741, and within a 24-hour basis the price of bitcoin went up by 4.6%; the highest it’s been in the 16 days prior.

After a 5 week low of $6,100 that happened this Wednesday (19th), Bitcoin made a recovery that was likely fueled by an increase in investor demand for altcoins. For example, XRP Ripple – the third largest cryptocurrency by market capitalization – rose 42% over the past 24 hours. Also, about 18% of the total XRP trading volume originates from BTX/XRP pairs. The bitcoin price September analysis from Bitcoin Exchange Guide suggested traders take a neutral position, which may have been good advice in hindsight.

Aurora (AOA) was up by 57% on the 21st and is the best performing cryptocurrency on CoinMarketCap. By the same token, about 60% of its total trading volume is coming from AOA/BTC pairs.
Similarly, MONA’s 43% rise in price is most likely being pushed by MONA/BTC and MONA/JPY pairs according to CoinMarketCap.

Altcoin / Bitcoin relationship

It may be worth noting that most altcoins are often traded against the major coins such as Bitcoin and Ethereum. This means that money has the tendency to flow into altcoins through bitcoin, creating upside pressure on the top cryptocurrency.

This could result in the price of bitcoin seeing further gains if the altcoin rally continues to attract new investors to the market.
When looking at the charts, the most convincing move above $6,600 (September 14th’s high) paints a bullish picture, albeit short-term at the moment.

BTC to USD chart

As you can see from the above chart, bitcoin moved past the double bottom resistance line of $6,600 on the 21st, confirming a bullish reversal is taking place.

At this rate, the price of bitcoin may, in fact, move to test the upper edge of the pennant pattern. The pennant pattern is currently located at $7,050. A UTC close above that level could possibly add credence to the higher price lows that have been set over the last 3 months, whilst adding the potential for a move towards highs above $8,500.

Bitcoin Price September 2018 & Volatility

Bitcoin has charted lower price highs, as well as lower price lows (pennant) since June. As bitcoin has been trading sideways for so long, both the bulls and the bears are sitting on the sidelines waiting for a strong directional bias. The result of this is that bitcoin’s volatility has hit the lowest it’s ever been since December 2016.

When measured by standard deviation across several cryptocurrency exchanges, bitcoin’s volatility is at it’s lowest since July 2017.

It could be worth noting that in most cases when an asset goes through an extended period of low volatility, a strong swing in either direction is usually what comes next. Using the same logic for the price of bitcoin; we could be expecting a big change in direction on the market soon.

Summary

  • Bitcoin’s recovery from $6,100 seen in 48 hours on the 21st could be due to a surge in investor interest in altcoins.
  • The double bottom breakout has opened the doors to $7,050. A UTC close above that level would confirm a pennant breakout, boosting the prospects of a sustained rally to $8,500.
  • On the contrary, acceptance below $6,600 would neutralize the immediate bullish outlook. A UTC close below the pennant support will likely put the bears back in the lead.

If you look at the bitcoin price September, positive signals are flowing. It looks like a good time for bitcoin. With herds of people flocking to cryptocurrency and the prices potentially rising again, now seems like a good time to get back into the swing of things. It may be smart to either invest now or wait for another dip to buy low. Bitcoin could potentially go up in value at the end of the year, which could be a motivation to invest.

Plan your Trade & Trade your Plan.

Let us know how you think the rest of this year will go. Do you think the price of bitcoin will go up or down in value? Does it even matter?

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.