Bitcoin (BTC) Braces for September Slump: History Suggests Prices Could Plunge to $55,000
September has historically been a bearish month for Bitcoin, often characterised by price corrections. Notably, the trend over the past seven years shows that six out of seven September ended in the red. With this historical trend as a backdrop, there is growing concern among market participants that Bitcoin may experience further downside in the coming weeks.
Historical September Seasonality
Out of the last seven years, Bitcoin prices have fallen in six September, highlighting a strong seasonal tendency towards bearishness during this month.
Historical data shows that the average return for Bitcoin in September over these seven years is approximately -4.5%. If Bitcoin follows this historical pattern, the price could potentially decline to around $55,000 this month.
Some crypto experts noted that historical performance includes significant corrections, which aligns with broader market sentiments and macroeconomic factors influencing Bitcoin’s price.
Current Market Sentiments
At the time of writing this report, Bitcoin’s price is slightly above $55,000. Given the historical September trend and current market conditions, a further decline toward the $54,000 level is a possibility.
Technical analysis indicates that Bitcoin may find strong support around the $54,000 mark. This level acted as robust support in July, helping the cryptocurrency bounce back and eventually reach its all-time high of approximately $70,000.
Recent market behaviour, including declining trading volumes and increased volatility, suggests bearish sentiments are prevailing. Additionally, macroeconomic factors such as tightening monetary policies and potential regulatory crackdowns on cryptocurrencies may contribute to negative price action.
Experts predicted that a stronger-than-expected sell-off could push Bitcoin’s price below the $54,000 support level. If the price breaches this support, it may trigger further selling pressure, potentially leading to a more significant correction.
On the other hand, despite the historical bearish trend, Bitcoin could defy expectations due to unexpected positive news or a strong resurgence in buying interest. A rally above the $55,000 level could negate the bearish scenario.
Some crypto experts suggested that by understanding the historical seasonality and current market dynamics, investors can better navigate the potential risks and opportunities in the Bitcoin market this September.
Bitcoin price Action
The current trade price of Bitcoin (BTC) is $58,377 & this price is 1% high over the last 24 hours period.
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