Benzinga - A pseudonymous crypto analyst has issued a cautionary outlook for Bitcoin (CRYPTO: BTC) in the coming month titled “Terrible September Ahead for Bitcoin: 5 Things To Keep In Mind This Month.”
What Happened: The analysis offers a comprehensive view of what Bitcoin investors may expect in September.
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Historically, September has been a challenging month for Bitcoin. According to Rekt Capital, 8 out of 10 past Septembers have experienced downside movements. However, these declines have mostly been single-digit drawdowns, with only two months (2015 and 2016) exhibiting minimal gains of +2% and +6% respectively.
The most frequently occurring drawdown in September has been a -7% dip throughout the month. This pattern has been observed in 2017, 2020, and 2021, with a similar -5% dip in 2018 closely approaching the -7% benchmark.
Terrible September Ahead for Bitcoin: 5 Things To Keep In Mind This Month1. September tends to be a negative month for #BTC
Typically, we tend to see a negative month for BTC in September
However, for the most part BTC sees single-digit drawdown in Septembers
8 out of 10 of… pic.twitter.com/D696daIsAr
— Rekt Capital (@rektcapital) September 5, 2023
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Why It Matters: Considering recent market conditions, Rekt Capital believes that a severe market crash in September is highly unlikely. "It’s unlikely that Bitcoin would experience severe back-to-back drawdown both in August and now in September as well," the analyst said.
Rekt Capital suggests that a drawdown of approximately -7% to -10% in September could reasonably occur based on current levels. Such a decline would potentially lead Bitcoin’s price to drop to the range of $22,500 to around $24,000.
Price Action: At the time of writing, Bitcoin was trading at $25,765.83, up 0.32% in the last 24 hours, according to Benzinga Pro.
Photo by Oier Aso on Shutterstock
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