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Analyst Points A Bitcoin Warning, Calls September A Crimson Month


In a current video by famend cryptocurrency analyst Benjamin Cowen, ominous predictions for Bitcoin efficiency in September have emerged. Cowen, identified for his data-driven method to cryptocurrency evaluation, shared his insights concerning Bitcoin’s historic efficiency in September and its potential trajectory for the present yr.

Cowen acknowledged that September has historically been a difficult month for BTC, usually characterised by unfavorable value actions. He emphasised that whereas historic developments counsel a pink month for Bitcoin in September, there are not any ensures, and occasional inexperienced September does happen.

The analyst highlighted that Bitcoin had skilled six consecutive pink September from 2017 to 2022. The common return for Bitcoin in September has traditionally been round -6.6%, with a regular deviation that provides to the unpredictability of the cryptocurrency’s efficiency.

Inspecting Potential Worth Declines

Cowen then delved into the potential value decline for Bitcoin in September. Given Bitcoin’s opening value of slightly below $26,000 for the month, a 7% lower would convey its worth to roughly $24,000. He additional identified that within the pre-halving yr of 2019, Bitcoin witnessed a 14% drop in September, probably pushing its value all the way down to $22,000.

To bolster his argument, Cowen referred to a current tweet during which he speculated a considerable likelihood of Bitcoin reaching $23,000 in September. Though he careworn that this prediction is way from a assure, he underscored the seasonal sample, the downward momentum, and the current month-to-month shut beneath sure assist ranges as components that make a dip to $23,000 believable.

Furthermore, Cowen mentioned the common returns in all pre-halving years for the month, revealing a drop of roughly 17.7%, which might end in Bitcoin buying and selling at round $21,500 if historical past repeats itself.

On August’s efficiency, Cowen famous that Bitcoin had already skilled a ten% drop. Whereas August’s long-term common is roughly 21%, averaging solely the final two pre-halving years (2015 and 2019) suggests a extra modest -11% to -12% common drop. This highlights that Bitcoin could comply with an identical sample in September, probably softening the blow to round $24,000.

The present value of Bitcoin (BTC) is  $25,813, with a 24-hour value change of -0.99%. Because the main cryptocurrency, Bitcoin instructions a big market cap of $502,654,681,515, securing its place because the primary cryptocurrency by market capitalization. Up to now 24 hours, Bitcoin has skilled a buying and selling quantity of $17,603,174,408, making it the second most actively traded cryptocurrency by quantity. This excessive buying and selling quantity signifies robust curiosity and exercise throughout the Bitcoin market, contributing to its liquidity.

BTCUSD chart
Bitcoin at the moment hovers at $25,813 within the each day chart. | Supply: BTCUSD chart from TradingView.com

Navigating Bitcoin’s Cyclical Nature

Cowen emphasised that regardless of the uncertainty, the seasonality of Bitcoin and the present downward momentum make a take a look at of the $23,000 stage extremely seemingly within the close to future, presumably in September or October.

Cowen mirrored on the cyclical nature of Bitcoin’s value actions in a broader context, stating that it usually alternates between bullish and bearish phases. He careworn that in pre-halving years, Bitcoin tends to rise considerably through the first half and expertise declines within the latter half. Based on Cowen, this sample is designed to “wreck” each bulls and bears earlier than coming into a interval of sustained development.

He additionally identified that whereas BTC could face challenges within the quick time period, as soon as quantitative easing (QE) returns and the cryptocurrency market sentiment improves, altcoins might regain momentum.

In conclusion, Cowen cautioned his viewers to stay vigilant in September, traditionally a month of pink returns for Bitcoin. He urged warning, citing previous knowledge and market dynamics as indicators of a probably difficult month forward. Whereas the longer term stays unsure, Cowen’s data-driven evaluation serves as a beneficial useful resource for these navigating the turbulent waters of the cryptocurrency market. Traders and lovers will undoubtedly watch intently to see if Bitcoin’s efficiency aligns along with his predictions within the coming weeks and months.

Featured picture from Pixabay and chart from TradingView.com

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