- August 29, 2022
September could be a tough month for bitcoin and other cryptocurrencies
September has historically been the worst month for the bitcoin price, according to records.
That added to the low demand and the macro environment makes a possible bad month for BTC approaching.
Bitcoin (BTC) has stepped these days its worst price of the last two months at the level of USD 19,000. And it is projected that it could continue its decline, affecting other cryptocurrencies, next month: in September.
Historically September has been the worst month of the bitcoin price. As you can see in the following table, it usually makes falls in that period every year. And the same thing has been happening in the stock market for more than a century, according to hold the specialist Danielle.
Why is September usually a month of losses in the markets? Cryptocurrency analyst Thomas Kralow explained to his more than 100,000 subscribers on YouTube that the reason is as follows. Indicates that normally in this period, investors in the northern hemisphere abandon their assets after returning from their holidays summer.
He points out that this is how they do it to take profits if they made them at all or block tax losses before the end of the year. He also comments that it is a time when children’s annual school costs must be paid. That causes some to withdraw their positions from the market for this type of expense.
September has historically been negative for risky assets such as bitcoin
The analyst remarks that he does not know how relevant this is, but he has historically seen that September has been very volatile and negative. That is why he warns that we could have this scenario this month, to which he adds that the United States is halfway through the elections. And he believes that all this it will drive a lot of price fluctuation for bitcoin.
In order for September not to affect bitcoin, he mentions that we need it to return to $20,000 and stabilize above that price. In this way, he believes that he will then go above USD 21,800 to continue with the rally he had been making.
But if it fails to achieve this, it thinks it will continue to fall to near the annual low just below $18,000 or less in the worst-case scenario. Currently the low demand has been accentuated after the comments of the president of the Federal Reserve of the United States (Fed) reported in Crypto News.
Kralow summarized that “all this downward movement [que tuvo bitcoin estos días] it is attributed to Jerome Powell [el presidente de la Fed]». Despite this discouraging outlook, as a long-term bullish considers that it could be a buying opportunity. This is also what the popular traders have said Juan Rodríguez, Michael van de Poppe and Next100XGEMS.