Bitcoin (BTC) is about to experience its worst performance in August, the worst since the bear market of 2015. For many, September is not looking any better.
Ready for Red September?
According to data shared by Coinglass, the BTC/USD pair had its worst August in 7 years. In fact, since the bear market of 2015, we have never seen a poorer performance of BTC and for analysts, it is unlikely to improve in September. September is known as the “red” month. For the hodlers, the period is to prepare, because it will be necessary to face the “fall of September” with average loss of 5.9% in bitcoin price.
In recent weeks, the price of bitcoin has seen two significant declines. For coin holders, this is a time of doubt and anxiety. The worst part is that they know they still have to pass September, whose results were always worse than those of August.
14% drop for BTC/USD
This month of August the BTC/USD pair fell to $20,000, down almost 14%. We haven’t seen such a drop since 2015 when the monthly red candle was around 18.67%. The following years reinforced the idea that August is not the month for Bitcoin. However, in 2017, the base rose over 65%. It usually proves that this is by no means a regular downturn.
The feelings for September are a bit more mixed, however. For Bitcoin, September is a red month and the data shared by Coinglass confirms this. In 2013, the average losses were 6%. This month, macroeconomic instability is mentioned and analysts are confirmed in their predictions for the red month.
From the stock market to cryptocurrencies
According to trader Josh Rager, the fall in the BTC/USD pair is an indication of the current decline in the equity market. The support of $20,000 is also a harbinger. For traders, this fall will be announced for September opportunity to buy parts. This indeed represents a buying opportunity for the following months.
He added that the possibility of creditors selling bitcoins from the Mt. Gox en masse by creditors. Remember that they were going to get them after a waiting period of more than 8 years. For Cointelegraph, this probability is simply impossible since the fears are unfounded.
Not very attractive monthly chart
On monthly IT things look ugly
The monthly close does not herald a miracle and the analysts focused on the price curve. If the candle closes below $20,000 this would already indicate a lower limit. If this does not happen, then we will be hitting June lows since 2020. For Trading Galaxythe worst case scenario is that this triggers a snowball effect. This weekend, he indeed declared on his Twitter account: “On monthly IT, things look very ugly”.
If the monthly candle closes below $20,000 within 3 days, it will result in a selloff of $14,000 to the next support. Meanwhile, a close below $19,900 would give a bearish engulfing candle. In IT, this would be feared. This would violate the pivot zone that was implemented from 2020. Recall that a first movement above this level was recorded that year.
For Caleb Franzen, senior market analyst at Cubic Analytics, bitcoin is ready for another test of the main pivot zone. It was recognized thanks to the candle and the monthly end of 2017. It was indeed a resistance zone in 2019. It then allowed bitcoin to regain strength in 2020 and again in 2022.
More information: Bitcoin still in the dark, what to expect?