September 2024 presents a pivotal moment for the cryptocurrency market, with Bitcoin (BTC) and Ethereum (ETH) at the forefront. With the upcoming Federal Reserve rate cut, market sentiment is skewing towards optimism, especially with the possibility of looser monetary policies boosting liquidity in the crypto space.
Additionally, the approaching US elections have brought Bitcoin and Ethereum into the spotlight. Both leading candidates have shown a pro-crypto stance, potentially setting the stage for a bullish trend.
The broader macroeconomic environment, characterized by ongoing inflation concerns and geopolitical tensions, could further amplify the impact of these developments.
Furthermore, institutional interest in cryptocurrencies could surge if the US government accumulates BTC and ETH, adding to the market’s momentum. As these dynamics unfold, BTC and ETH are poised for significant price movements, with September becoming crucial.
Bullish Cues for Bitcoin and Ethereum
The Fed’s anticipated rate cut in September could be the first significant tailwind for Bitcoin and Ethereum. Lower interest rates traditionally encourage investment in riskier assets, including cryptocurrencies, as borrowing costs decrease.
Due to their market dominance, Bitcoin and Ethereum will likely benefit the most from the rate cut and the influx of investment. Moreover, the upcoming US elections are proving to be another bullish factor. Both leading presidential candidates have expressed a pro-crypto stance, signaling potential regulatory support for the sector.
If either candidate wins, the crypto market could see a significant boost in confidence, driving up prices for both Bitcoin and Ethereum. Furthermore, political support could pave the way for broader adoption, particularly at the institutional level, where regulatory clarity is crucial.
The prospect of the US government accumulating Bitcoin and Ethereum also looms large as a potential game-changer. If such a move were to occur, it could trigger a massive wave of institutional buying from government bodies, digital asset management companies, and major financial institutions worldwide.
Such an adoption could drive a sustained price rally. The scenario could see Bitcoin and Ethereum reaching new all-time highs as the demand from institutional investors surges.
Bearish Cues for Bitcoin and Ethereum
Despite the bullish backdrop, several bearish factors could weigh in on Bitcoin and Ethereum prices in September. One of the most significant risks is profit booking. As prices rise, many investors may be tempted to lock in gains, leading to selling pressure that could dampen the upward momentum.
Another potential bearish factor is the rotation of profits into other cryptocurrencies or assets. With Bitcoin and Ethereum commanding a large portion of the market, any shift in investor focus towards smaller, potentially higher-yielding tokens could result in capital outflows from BTC and ETH.
The rotation could lead to short-term price declines. If investors perceive a peak in BTC and ETH prices, they might quickly pivot to more speculative investments, causing a broader market sentiment shift.
This shift could spark a more extensive correction across the crypto market, as profit-taking in Bitcoin and Ethereum could trigger a chain reaction, leading to broader sell-offs.
Bearish Technicals For The Tokens
Moreover, both BTC USD and ETH USD have formed bearish technical setups. For Bitcoin, it is the ‘descending triangle pattern.’
Analysts recognize the descending triangle as a bearish continuation pattern. The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support.
The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.
In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin’s price recently broke out of this descending triangle, only for bulls to push it back within the pattern.
However, if the BTC USD pair coin price confirms the bearish setup, BTC price could plummet by over 33%, reaching a target near $39,370.
For Ether, the technical setup is the ‘bear flag.’
The bear flag pattern appears on a cryptocurrency price chart when a brief, sharp countertrend movement—often referred to as the flag—follows a preceding downward trend. The formation typically signals a potential reversal of the countertrend.
Volume levels may stabilize or decrease during consolidation in a bearish continuation setup. During the consolidation period of a bear flag setup, the market often trends upward in response to the initial price drop, triggering FUD.
The emotional response typically results in higher-than-average trading volumes as investors and traders re-enter the market to capitalize on or mitigate the price movement’s effects.
Traders calculate the bear flag pattern’s price target by subtracting the flagpole’s length from the breakout price level. As a result, the ETH USD price might drop to $1,665, a 35% drop from the current price levels.
The post Bitcoin (BTC) and Ethereum (ETH) Price Prediction For September 2024 appeared first on CoinChapter.
