On August 23, Bitcoin (BTC) was unsuccessful in breaking the critical psychological barrier of $50,000. The month of September may present a negative performance in 4 out of the 5 previous years.
According to market analyst, Michaël van de Poppe, Bitcoin’s next bull run could depend on the value of Ether (ETH) breaking above $3,500. Currently, ETH is trading at $3,700 as traders wait apprehensively for BTC’s update.
Some good things are happening to reassure the bulls. El Salvador’s Bitcoin Law is about to come into effect from September 7. Another potentially bullish move is the Legislative Assembly’s approval of the $150 million Bitcoin Trust.
The bulls will be put to the test on September 3, when $655 million in BTC expire. This is because 93% of the buy (call) option values are placed at $48,000. They could even go higher than that.
Breaking the $50,000 Barrier
The bulls and the bears are ready to tackle it out. While the bears will try to reduce the damage taken, the bulls will continue to rein control over the situation if the value of BTC does not drop below $48,000.
At the $50,000 mark, the bulls have a clear advantage to destroy all protective measure options. They can also gain a $165 million incentive. There are chances of volatility before the September 3 expiry, but the bulls still seem to have a secure advantage.
For bears to succeed, they would require a miracle regulatory news flow or a fall in the value of Bitcoin prices.