Bitcoin Ends August Down 8%: What To Expect From Historically Bearish September

by

As a seasoned analyst with over two decades of market observation under my belt, I find myself cautiously optimistic about the near-term prospects for Bitcoin (BTC). The recent performance in August and the bearish outlook from CryptoQuant suggest a challenging September ahead, with potential price drops to around $55,000. However, history has shown us that September is often a bearish month for BTC, so this prediction aligns with past trends.

As an analyst, I’ve observed a 8.6% decline in Bitcoin (BTC) price during the month of August, which has further intensified the bearish sentiment that has prevailed in the market since it peaked at an all-time high of $73,7000 in March this year. Regrettably, BTC has been unable to regain and hold above significant resistance levels since then.

Yet, it’s possible that the downward trend in the market might persist even beyond now, according to a recent assessment by the research company, CryptoQuant, predicting continued bearishness through September.

Challenging September For Bitcoin

Based on CryptoQuant’s analysis, September looks tough for Bitcoin as well. Their findings suggest that the “BOJ crash” in early August, which caused the token to plummet to a six-month low of $49,000, has made it difficult for Bitcoin to rebound above the $65,000 level since then.

Furthermore, past trends indicate that Bitcoin tends to decline during September, as six out of the last seven Septembers have ended with a drop, averaging approximately a 4.5% decrease. The company predicts that if this trend persists, the price of Bitcoin could drop to around $55,000 by month’s end.

Although CryptoQuant perceives a pessimistic trend, they suggest that the situation might not be as grim as it appears. They foresee Bitcoin encountering robust support approximately at the $54,000 price mark, a level it had previously rebounded from in July before heading towards $70,000.

Long-Term Confidence Indicator

Keep an eye on the economic data in the upcoming week, specifically focusing on the Unemployment Claims report scheduled for September 5th and the Non-Farm Payroll (NFP) report set for September 6th.

On the other hand, CryptoQuant indicates that people’s expectations about the effect of these macroeconomic factors on cryptocurrency prices might be moderated, as they seem to have less impact in the recent past.

1. Additionally, it’s anticipated that the Bitcoin volatility graph will become steeper since short-term volatility is projected to decline. Intriguingly, there seems to be persistent optimistic feelings among traders in the mid-term market, even after the recent pullbacks, as they opt for buying long call options not only for Bitcoin but also Ethereum (ETH).

Here’s one way to rephrase it:

In my research, as I type this, Bitcoin, the leading cryptocurrency in the market, is currently trading at approximately $58,400. Over the last 24 hours, its value has decreased by 0.2%, and over the past 30 days, it has seen a drop of 5.5%. However, despite these recent price adjustments, data from CoinGecko indicates that Bitcoin is still up an impressive 126% since the start of the year, positioning it among the top-performing digital tokens.

Read More

2024-09-02 23:10