We talked about September being a period of constant losses, and September demoralized investors in line with its historical performance. Cryptocurrencies and even US stock markets have always experienced declines in September. In other words, September is seen as a buying period for risk markets. It is not known whether the real bottom has been seen yet, but everyone is hopeful in October.
Uptober and Cryptocurrencies
September is a nightmare season, and October and beyond are full of upside. Historical data confirms this. September has been a down month for the S&P 500 for roughly 100 years. The last 94 years have seen a steady decline. Bitcoin $54,380.21Recent historical data also confirms that the has fallen during the month of September 8, 2013 to the present. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The popular cryptocurrency analyst known by the username Ali_charts recently shared the chart above and wrote the following today.
“September Bitcoin “Although historically a difficult month for Bitcoin, remember that October is just around the corner. Often referred to as “Uptober,” this month is known to be one of the best months for Bitcoin.”
Over the past 10 years, BTC has fallen an average of 5% in September. Jake Ostrovskis, an OTC trader at Wintermute, is a bit more cautious.
“While the market likes to focus on the ‘September Effect’ given its historical performance, the small sample size makes it difficult to use as a leading indicator.”
Still, S&P 500 data has confirmed this for long enough that we can be confident that the “September effect” is real for risk assets. Grayscale’s Zach Pandl believes that a significant portion of investors will be bullish on October’s historical performance.
Could Bitcoin Drop 50 Percent?
Altcoin Sherpa examined periods of loss of 50 percent and above in the cycle in his assessment shared at the time of writing the article. We saw this in 2019 and 2021. The graph below shows the period from 2019 and cryptocurrency analyst seems to be worried about a similar scenario these days.
“There have been a few instances where we had a 50% drop for BTC and it wasn’t a full-on bear market. There were two such cases in 2019 and 2021.
“In fact, 2019 was almost a cycle in itself: 3K-14K moves, then down to 6K and up again. I need to look into this further.”
If BTC fails to initiate the expected return in October and establish a new peak away from the ATH level, these will probably be one of the things we will talk about.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
