Crypto Analyst’s September Warning: Bitcoin Faces A Red Month
September 02 2023 - 10:30AM
NEWSBTC
In a recent video by renowned cryptocurrency analyst Benjamin
Cowen, ominous predictions for Bitcoin performance in September
have emerged. Cowen, known for his data-driven approach to
cryptocurrency analysis, shared his insights regarding Bitcoin’s
historical performance in September and its potential trajectory
for the current year. Cowen acknowledged that September has
traditionally been a challenging month for BTC, often characterized
by negative price movements. He emphasized that while historical
trends suggest a red month for Bitcoin in September, there are no
guarantees, and occasional green September does occur. Related
Reading: Shiba Inu Marketing Lead Sends Important Message To SHIB
Holders The analyst highlighted that Bitcoin had experienced six
consecutive red September from 2017 to 2022. The average return for
Bitcoin in September has historically been around -6.6%, with a
standard deviation that adds to the unpredictability of the
cryptocurrency’s performance. Examining Potential Price Declines
Cowen then delved into the potential price decline for Bitcoin in
September. Given Bitcoin’s opening price of just below $26,000 for
the month, a 7% decrease would bring its value to approximately
$24,000. He further pointed out that in the pre-halving year of
2019, Bitcoin witnessed a 14% drop in September, potentially
pushing its price down to $22,000. To bolster his argument, Cowen
referred to a recent tweet in which he speculated a substantial
chance of Bitcoin reaching $23,000 in September. Although he
stressed that this prediction is far from a guarantee, he
underscored the seasonal pattern, the downward momentum, and the
recent monthly close below certain support levels as factors that
make a dip to $23,000 plausible. Moreover, Cowen discussed the
average returns in all pre-halving years for the month, revealing a
drop of approximately 17.7%, which could result in Bitcoin trading
at around $21,500 if history repeats itself. On August’s
performance, Cowen noted that Bitcoin had already experienced a 10%
drop. While August’s long-term average is approximately 21%,
averaging only the last two pre-halving years (2015 and 2019)
suggests a more modest -11% to -12% average drop. This highlights
that Bitcoin may follow a similar pattern in September, potentially
softening the blow to around $24,000. The current price of Bitcoin
(BTC) is $25,813, with a 24-hour price change of -0.99%. As
the leading cryptocurrency, Bitcoin commands a significant market
cap of $502,654,681,515, securing its position as the number one
cryptocurrency by market capitalization. In the past 24 hours,
Bitcoin has experienced a trading volume of $17,603,174,408, making
it the second most actively traded cryptocurrency by volume. This
high trading volume indicates strong interest and activity within
the Bitcoin market, contributing to its liquidity. Navigating
Bitcoin’s Cyclical Nature Cowen emphasized that despite the
uncertainty, the seasonality of Bitcoin and the existing downward
momentum make a test of the $23,000 level highly likely in the near
future, possibly in September or October. Cowen reflected on the
cyclical nature of Bitcoin’s price movements in a broader context,
stating that it often alternates between bullish and bearish
phases. He stressed that during pre-halving years, Bitcoin tends to
rise significantly during the first half and experience declines in
the latter half. According to Cowen, this pattern is designed to
“wreck” both bulls and bears before entering a period of sustained
growth. He also pointed out that while BTC may face challenges in
the short term, once quantitative easing (QE) returns and the
cryptocurrency market sentiment improves, altcoins could regain
momentum. Related Reading: On-chain Sleuth Potentially Unveils
Shiba Inu Founder With Shocking Affiliates In conclusion, Cowen
cautioned his audience to remain vigilant in September,
historically a month of red returns for Bitcoin. He urged caution,
citing past data and market dynamics as indicators of a potentially
challenging month ahead. While the future remains uncertain,
Cowen’s data-driven analysis serves as a valuable resource for
those navigating the turbulent waters of the cryptocurrency market.
Investors and enthusiasts will undoubtedly watch closely to see if
Bitcoin’s performance aligns with his predictions in the coming
weeks and months. Featured image from Pixabay and chart from
TradingView.com
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024