Bitcoin price to drop again in September?

Takeaways:

BitcoinBTCThe first negative month since April is about to come to an end, and this could fuel fears of a further decline as September gets underway.

Bitcoin is not a good month during September

Bitcoin is a popular currency. tendency to slide in September.

Since 2013, Bitcoin has closed in the red for eight of the past twelve months, with average returns slipping about −3.80%.

The “September Effect“, a month in which traders lock-in profits following summer rallies and reposition their portfolios before Q4. Since 1928, for instance, the S&P 500 index’s returns in September have averaged around -1.20%.

Bitcoin, which is usually in line with more risky investments can fall victim to this seasonal drop.

The pattern suggests that sellers have been ahead of the game.

Related: Bitcoin price loses key multiyear support trendline: A classic BTC fakeout?

Analyst Rekt Fencer says That a “September dump is not coming” Bitcoin’s performance from 2017 is being cited to explain the rise in Bitcoin value.

Chart overlays of 2017 and 2020 reveal a mirror image. Bitcoin fell sharply late in August on both cycles. However, it found its footing near a critical support zone. Then, the price reversed.

This retest took place in 2017 and marked the last test before BTC’s price rose to $20.000.

Bitcoin has now returned to its multi-month low between $105,000 and $100,000, which could serve as the base for an upward parabolic spiral.

Bitcoin’s record could be broken in as little as 4-6 weeks

The $105,000–$110,000 zone acted as resistance earlier in the year, but it has now flipped into support, a classic bullish structure in technical analysis.

The so-called “hidden bullish divergence.” Bitcoin is still worth more than it was before. relative strength index (RSI)This popular indicator of momentum has not fallen nearly as far.

It usually signals that the market’s strength isn’t as low as it appears on the chart, and suggests buyers are slowly stepping in again.

The Analyst ZYN suggests that Bitcoin could be on track for a fresh all-time high above $124,500 within the next 4–6 weeks, owing to these technical patterns that justify a potential rally in September.

A weaker dollar can help Bitcoin bulls in September

The currency traders. turning bearish on the dollar As the US economy slows down, expected Fed rate cuts Perceptions are important. There are those who believe the dollar will fall by another 8% during this year. Donald Trump’s criticism of the Fed is also contributing to the decline.

As of Sunday, the 52-week correlation between Bitcoin and the US Dollar Index (DXY) had slipped to −0.25, its weakest level in two years.

This shift increases Bitcoin, and the crypto markets in general, chances of increasing in September, if the slumping dollar continues.

“The Fed will start the money printers in Q4 of this year,” Analyst Ash Crypto said Last week I added:

“Two rate cuts mean trillions will flow into the crypto market. We are about to enter a parabolic phase where Altcoins will explode 10x -50x.”

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.