Bitcoin's September Slump
Bitcoin in September

 Bitcoin's September Slump- A Dive Below $25,000 on the Horizon?

September 2, 2023

The cryptocurrency market is buzzing with speculations as renowned strategy analyst Benjamin Cowen shares a somber prediction for Bitcoin in September. With a history of gloomy performances in this month, the world's most popular cryptocurrency might be gearing up for another dip.

Historical Lows in September

Bitcoin, over the years, hasn't been particularly fond of September. Cowen pointed out that the currency's performance during this month historically averages negative, worse than any other month. In light of this, Cowen has forecasted a potential 10% decline, with Bitcoin possibly plummeting to the psychological barrier of $23,000.

This prediction gains weight as Bitcoin recently landed back in the $25,000 range, following the US Securities and Exchanges Commission's (SEC) decision to postpone rulings on spot BTC Exchange-Traded Funds (ETF). "September has never been crypto's month. Bitcoin, in particular, performs at its lowest," Cowen remarked.

Altcoins: A Silver Lining in 2024?

While Bitcoin may be facing a stormy September, the future looks promising for altcoins. Cowen envisions a resurgence for these digital assets, driven by macro tailwinds propelling the market into 2024. This optimism is rooted in the upcoming Bitcoin halving event anticipated in early 2024, which typically ushers in market volatility.

Factors like US Elections, marked by significant market uncertainty, and aggressive rate hikes by the Federal Reserve could play pivotal roles in shaping the market dynamics.

Cowen opines that easing inflation and chatter about a possible recession might prompt the Fed to halt the rate hikes, paving the way for a potential "quantitative easing return", thereby allowing altcoins to flourish.

The Implications of Nonfarm Payrolls

Recent data from the US Bureau of Labor Statistics revealed that Nonfarm Payrolls (NFP) for August exceeded market expectations. However, this positive outlook is counterbalanced by the revision of July's figures and a hike in the unemployment rate. If traditional markets react negatively to these mixed signals, Bitcoin, often dubbed as 'digital gold', might emerge as the preferred hedge against market instability.

Technical Analysis: A Bearish Trend for Bitcoin

As of now, Bitcoin's technical indicators suggest a bearish momentum. After breaking the significant $25,900 support level, the cryptocurrency seems to be heading towards the next major support at $25,400. If it dips below this, Bitcoin might test waters around $24,600, with $24,150 serving as a strong base.

On the flip side, if Bitcoin breaks the bearish spell and rises beyond $25,400, it could be looking at resistance at $25,900. A bullish run beyond this could see the cryptocurrency soaring towards $26,400 or even $27,000.

Closing Thoughts

With Bitcoin's historical aversion to September and current market indicators, traders and investors should brace for potential volatility.

Whether Bitcoin will indeed test the predicted lows or defy expectations remains to be seen. As always, potential investors should exercise caution and conduct thorough research before making any decisions.

Note: This article is for informational purposes only and should not be considered as financial advice. Always consult with a financial expert before making any investment decisions.