As the cryptocurrency market braces itself for the arrival of September, renowned crypto trader and analyst Rekt Capital has taken to Twitter to issue a stark warning. Historically, September has not been kind to Bitcoin, and investors should keep five key factors in mind as they navigate this potentially treacherous month.
September tends to be a negative month for BTC, with 8 out of 10 past September experiencing a downside. While Bitcoin has occasionally managed small, single-digit gains this month, it’s essential to acknowledge the predominant bearish trend.
Only in 2015 and 2016 did Bitcoin show marginal positive returns, with +2% and +6%, respectively. For the most part, September has been a month of decline for the leading cryptocurrency.
One of the most consistent features of Bitcoin’s performance in September is a recurring drawdown of approximately 7%. Over the years, Bitcoin has seen a 7% retracement in September during 2017, 2020, and 2021. 2018, there was a 5% dip, coming close to the familiar 7% mark.
Looking ahead to September 2023, it’s crucial to contextualize potential drawdowns. While Bitcoin experienced a severe 13% retrace in 2019, it’s worth noting that 2019 was not preceded by a significant drawdown in August.
August 2023 saw a 16% decline, which makes it less likely for Bitcoin to experience another substantial setback in September. Therefore, while cautious, it’s improbable that September 2023 will see a massive crash, and the retracement is more likely to be in the range of 7% to 13%.
However, keeping these five key insights from Rekt Capital in mind, traders and investors can approach September with a well-informed strategy, prepared for the challenges and opportunities that lie ahead.
Bitcoin Latest Price Analysis With Mixed Short-term Outlook
Meanwhile, Glassnode Co-founder Negentropic has presented an analysis of Bitcoin’s mid-term outlook, characterized by a favorable risk/reward profile. However, short-term prospects appear uncertain, with a trading range estimated between $25.8k and $26.8k.
A downside correction is possible, within the range of $23.8k to $24.8k, primarily attributed to the prevailing bearish trend. RSI bullish divergence and decreasing volatility indicate signs of a potential bottoming. To capitalize on the situation, investors are advised to consider buying after a dip, or once a solid support level at $26.8k is established to break the downward trend.
According to CoinMarketcap, BTC is currently trading at $25,749.41, boasting a 24-hour trading volume of $10 billion and a notable 8% increase. Over the past 24 hours, it has experienced a modest decline of 0.57%.
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