Bitcoin prices temporarily entered a new phase this week.
This is a phase characterized by a substantial lack of direction. This leads to minor movements that are almost unrelated except for very short term.
Left and right
In this regard, the hypothesis is increasingly circulating that Bitcoin prices may have entered a lateral movement phase that continues into mid-September.
In fact, key moments could only arrive on September 17th, when the Fed announces a new decision on interest rates.
To tell the truth, the market has taken it for granted that it would already choose a 25 basis point cut (which is already widely priced), but as often as it often happens, it could be the words spoken by Federal Reserve Chairman Jerome Powell that drives the market.
Until then, September is often a month that has not been particularly lively in the market, so it could essentially be on hold. What’s more, August is definitely one of the most active months on average, so the situation doesn’t suggest a big move.
However, this does not mean that Bitcoin prices do not experience fluctuations.
The hypothesis is that it could be a volatile lateralization, meaning continuous price change, but relatively restrained and undirected.
So, ultimately, Bitcoin prices can simply vibrate when they are above and below the current level.
Bull Run
However, there is no exclusion that a new bull run could be initiated once this possible lateral movement has ended.
Certainly, the period of sideways will end sooner or later, even though no one knows when. At that point, there may also be conditions for the reopening of Bull Run, depending on the market movement.
It should be remembered that in the final months of the year following the presidential election in the US, Bitcoin prices have not only always reached new all-time highs, but are driven by huge speculative bubbles.
The only exception was in 2009, the year Bitcoin was born. At the time, Bitcoin was not traded in exchange, so it had zero market value.
The hypothesis that a speculative bubble could swell again this fall is present as the dollar could drop.
Dollar
Bitcoin price trends tend to be inversely correlated with dollar index prices over the medium term.
Currently, the dollar index is still moving within the downward channel that began in January this year.
However, it is a very wide channel and has strong vibrations both up and down the average level, so it actually moves sideways around the current figure (about 98.5 points) when it starts in mid-July.
At such a moment, it is extremely difficult for Bitcoin to have the power to start rising again, and according to several analysts, this situation should last for a while.
However, the hypothesis flows that the dollar index could start falling again in the fall, meaning that it resumes the descending trend that began in January, resulting in a halt of the current left and right mini-phase.
If that happens to us, it makes sense to expect a recovery in the rise of Bitcoin.
Crypto Market
Currently, the crypto market is basically restricted to following the above trends. This is essentially bitcoin.
However, it should be emphasized that up until a few months ago, CMC’s Altcoin Season Index had a clear and clear Bitcoin season, below the 25 mark.
In other words, in current state it may not take much time to climb above 75 points. This indicates when the overall altcoin is better than Bitcoin.
So, at this point, the crypto market is following Bitcoin, but if the situation is lifted, many altcoins may begin to move independently of BTC. However, you should remember that the alto season generally lasts for almost weeks, or at most months.
