Bitcoin Price Analysis: BTC Dips Below $117,000, Is A Deeper Correction On The Horizon?

Bitcoin (BTC) fell below $116,000 as the 0.25 bps rate cut announced by the Federal Reserve failed to push cryptocurrency prices higher. The flagship cryptocurrency is down nearly 1% during the ongoing session, trading around $116,331. 

Analysts believe that BTC’s uptrend remains intact, despite recent price sluggishness, and that it could enter a price discovery phase in October. 

SEC Approves Multi-Asset Crypto ETP 

The United States Securities and Exchange Commission (SEC) has greenlit the first multi-asset cryptocurrency exchange-traded product (ETP), clearing Grayscale’s Digital Large Cap Fund for listing. The fund will give investors exposure to Bitcoin, Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA). The approval is a milestone for the digital asset industry, and comes after the staggering success of US spot Bitcoin ETFs. The multi-asset ETP allows investors an easy avenue to gain exposure to major digital assets without opening accounts on exchanges. 

The latest filing comes amid growing investor expectations of an altcoin season, a period in bull markets when altcoins outperform BTC and register significantly larger gains. Coinbase Institutional’s Global Head of Research, David Duong, stated, 

“We think current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September.”

The ETP was approved under the SEC’s new generic listing standards, designed to speed up review processes for spot crypto ETFs on exchanges, including Nasdaq, NYSE Arca, and Cboe BZX. Grayscale CEO, Peter Mintzberg, stated, 

“Grayscale Digital Large Cap Fund $GDLC was just approved for trading along with the Generic Listing Standards. The Grayscale team is working expeditiously to bring the *FIRST* multi #crypto asset ETP to market with Bitcoin, Ethereum, XRP, Solana, and Cardano.”

Analyst Predicts 70% Drawdown In Next Bear Market 

Into The Cryptoverse founder Benjamin Cowen believes investors sitting on the sidelines could get another chance to enter the Bitcoin market. According to Cowen, BTC could drop as much as 70% during the next bear market. Analysts remain divided on where BTC is heading next. Some analysts believe a bear market is imminent, while others believe it is still far away. Cowen stated in an interview,

“I would say maybe a 70% drawdown from whatever the all-time high ends up. Does it have to happen? No, but you know, history would at least caution us to at least believe that it might.”

Some Bitcoin advocates, like BitMEX co-founder Arthur Hayes, have predicted BTC will cross $250,000 by the end of the year. Should Cowen’s prediction come true, BTC could crash to around $75,000. 

“If we start screaming higher in Q4 for me, it’ll just be simple like, all right, this time’s not different, I’ll just take profits back to stables.”

Cowen added that investors should expect another strong rally. 

“Obviously, investors are hopeful we are going to coil up and go into that final rally into the market cycle top. But if that starts to happen, just remember the top could occur at any moment, right? …No one’s going to be like this is the top.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is struggling to gain momentum during the ongoing session, and is down nearly 1%, trading just below the $116,000 mark. The flagship cryptocurrency had a muted response to the Federal Reserve’s announcement of a rate cut, dropping to a low of $114,724 on Wednesday. It rebounded from this level to reclaim $116,000 and settle at $116,484. The price recovered on Thursday, rising 0.54% to cross $117,000 and settle at $117,117. BTC is down over 1% during the ongoing session, trading around $115,850. 

CryptoQuant analysts have stated that BTC has scope for expansion above $117,000. According to data from the network value to transaction golden cross (NVT-GC) indicator, BTC is far from overheated. The indicator, which compares the market cap to the value of on-chain transactions within a given time frame, currently sits well within neutral territory. Negative NVT-GT values, especially values under -1.6, generally precede periods of upside. However, once the metric crosses 2.2 on the scale, a bearish reversal becomes likely. The NVT-GC’s most recent long signal was in July, when it reached -2.8 before rebounding to 0.3. CryptoQuant analysts summarized in a blog post, 

“This indicates neither extreme overvaluation nor undervaluation, but rather a healthy uptrend. Short Term: With the metric not elevated, Bitcoin is not yet in bubble territory. There is still room for price expansion.”

BTC faced volatility over the past weekend as it reached an intraday high of $113,390 on Friday (September 5). However, it failed to stay at this level and settled at $110,670, ultimately registering a marginal decline. Sellers retained control on Saturday as the price fell 0.41%. BTC recovered on Sunday, rising nearly 1% to end the weekend at $111,129. The price continued pushing higher on Monday, rising 0.85% to cross $112,000 and settle at $112,072. However, it lost momentum on Tuesday, dropping 0.47% to $111,547. Positive sentiment returned on Wednesday as BTC rallied, rising over 2% to cross $113,000 and settle at $113,983. Buyers retained control on Thursday as BTC rose 1.37%, crossing $115,000 and settling at $115,540. The price continued pushing higher on Friday, rising 0.49% to cross $116,000 and settle at $116,106.

Source: TradingView

Despite the positive sentiment, price action turned negative over the weekend as BTC registered a marginal decline on Saturday and fell 0.56% on Sunday, ending the day at $115,314. BTC faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price registered a marginal increase. BTC registered a sharp increase on Tuesday, rising over 1% to cross $116,000 and settle at $116,382. The price fell to an intraday low of $114,724 on Wednesday. However, it rebounded from this level to reclaim $116,000 and settle at $116,484, ultimately dropping 0.30%. BTC recovered on Thursday, rising 0.54% to cross $117,000 and settle at $117,117. Selling pressure has intensified during the ongoing session, with the price down over 1%, trading around $115,654.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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