Bitcoin’s (BTC) price has fallen below the key support level of $110,000, prompting some analysts to warn of a steep pullback in the largest cryptocurrency by market capitalization.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bitcoin’s price has declined 2% over the last 24 hours to $109,500, falling from a peak of $112,600 reached a day earlier. However, BTC isn’t the only crypto sliding lower. Ethereum (ETH), Solana (SOL) and Cardano (ADA) each fell more than 3% in the past day.
Stocks associated with crypto are also on the downslope, with shares of Strategy (MSTR) having fallen 3.2% in the past 24 hours. MSTR stock is now down 30% since the start of July. The stock of KindlyMD (NAKA) has plunged 75% since mid-August.
Darkening Skies
September is typically the worst month of the year for crypto. So bad that many analysts have dubbed the month “Red September.” The broad-based decline in crypto prices to start September has many analysts worrying about further downside ahead, particularly with stock market volatility worsening.
A recent report from Bitfinex notes that Bitcoin is now in its third consecutive week of retracement from its August all-time high of $123,640. Bull-market corrections in crypto usually average 17% peak-to-trough, suggesting the market is likely to soon bottom, according to the Bitfinex report. However, not everyone is so optimistic. Some analysts forecast that BTC will fall below $100,000 in coming weeks.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 8.25% in the last 12 weeks.
