Bitcoin Traders Remain Optimistic Despite September Downturn

Bitcoin traders are optimistic despite September's historically bearish trend for the cryptocurrency. While some traders remain cautious, others predict a surprise rally that may catch bears off guard.

Analysts believe Bitcoin could close the month above $60,000, driven by factors like a possible Fed rate cut and a resilient U.S. economy. As Bitcoin hovers below $60,000, opinions are split about its direction.

Bitcoin BTC's September Struggles and Historical Trends

Historically, September has been a difficult month for Bitcoin. Data from CoinGlass reveals that Bitcoin has consistently experienced negative returns in September, with an average loss of 4.49% over the last 11 years.

According to the data, since 2013, Bitcoin has seen more downturns in September than any other month. This has made September known as a bad month for the price of Bitcoin.

However, not all traders are convinced this trend will continue. Daan Crypto Trades, a popular analyst, said that Bitcoin's usual 4% drop in September isn't that bad. He believes Bitcoin's prices can change suddenly, making the drop seem less severe.

He said, In September, the average return was about -4 %. Considering Bitcoin's volatility, that's not as bad as people perceive it to be."

A user supported his claim, saying, No one in May of 2021 probably thought a 35% drop was coming. Before 2021, May was an insanely profitable month."

This suggests that the crypto market doesn't always go in one direction, and the tides could turn unexpectedly. So, there's still hope that Bitcoin will make a U-turn.

Ed Hindi, chief investment officer at Tyr Capital, also believes Bitcoin has a higher chance of closing September above $60,000 than it does below it.

Although September is historically a negative month for BTC, a Fed rate cut could surprise the bears," Hindi said.

Hindi and other analysts point to a potential Federal Reserve rate cut and a strong U.S. economy as reasons for this positive outlook.

According to CoinGlass data, Bitcoin hitting $60,000 could trigger over $584 million in liquidation.

Cautious Analysts Predict Possible Correction

While some traders predict a rally, others caution that a correction may come first. Matthew Hyland, a crypto analyst, emphasized the need for Bitcoin to bounce from recent lows and make a higher high.

He explained, We need to start to bounce out of this and make a higher high to confirm that we are in this uptrend."

In addition, Matthew said that Bitcoin's price has been rising since August, forming higher highs and lows.

However, this pattern isn't always reliable. BTC had significant drops in July and August, showing how unpredictable the market can be.

Similarly, Peter Brandt, a well-known crypto trader, predicts BTC could fall to $46,000. He identified a bearish megaphone formation" on Bitcoin's chart, which signals more selling pressure.

According to Brandt, Bitcoin's lower highs and lows show decreasing buyer confidence. If buyers don't return soon, he warns that Bitcoin's price could drop further.

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