September is shaping up to be a crucial month for Bitcoin, marked by growing concerns after a series of monthly drops. The flagship crypto could see another significant decline, fueling speculation about its near-term future. Analysis is in order as the storm approaches.
Is Another Bitcoin Selloff Coming?
Bitcoin, known for its volatility, is facing a particularly feared September. After a drop of 8.6% in August, concerns are growing about a possible crash at the start of the month.
Historical data shows that September is often a bearish month for crypto, and this year appears to be no exception.
A crypto analyst, active on the X platform under the pseudonym @thedefivillian, drew attention to a disturbing trend: the price of Bitcoin has been falling on the 5th of every month for the past few months.
In July, Bitcoin fell below $55,000, and in August it suffered another drop to below $50,000.
The prospect of a new collapse in early September therefore seems credible, and some are already speculating about a potential drop below $40,000.
As September gets underway, fears are palpable. Historically, this month is one of the most bearish for Bitcoin.
According to data from Coinglass, September returned negative for the ninth consecutive year. If this trend continues, the crypto community could see another plunge, exacerbated by the volatility already present in the market.
A bearish month to take into account
September is a dreaded month for Bitcoin investors, and for good reason. Historical data shows that this month is traditionally bearish for the crypto.
This is all the more worrying given that the month has already started on a negative note, with bitcoin struggling to regain the $60,000 level.
This month is among the few to show negative returns both on average and median over more than a decade of trading. Indeed, over the past 12 years, September has seen losses for Bitcoin nine times.
Speculation about another drop on September 5th is based on a series of recent crashes, each one worse than the last. This phenomenon has created a climate of fear among investors, who are preparing for a potential major crash. If this scenario comes to pass, Bitcoin could fall to an even lower level, exacerbating the panic in the market.
However, not all experts are pessimistic. Some see September as a necessary passage before a bullish recovery. This idea is based on the fact that, in the past, bearish Septembers have often been followed by periods of growth. So, while the storm seems inevitable, it could well precede a lull and a positive trend reversal with a line of Satoshi code that could change the game.
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