Bitcoin Price Approaches $60K, Yet Traders Anticipate Bearish September

Bitcoin Price Approaches $60K Amid Bearish September Outlook

Bitcoin (BTC) traded close to $59,000 on September 3 following a last-minute surge that resulted in a daily gain of 3.2%.

BTC Price Performance

Data from various trading platforms indicated that BTC experienced promising price movements ahead of the initial U.S. trading session for the week. Despite some weakness around the monthly and weekly close, BTC/USD saw a notable spike to highs of $59,800 overnight, even amidst a U.S. market holiday.

Popular trader Skew provided analysis via social media, suggesting that positive indicators were emerging on the 4-hour chart. He highlighted the importance of the price achieving certain conditions to confirm a continuation in upward movement, specifically needing a relative strength index (RSI) reading above 50. As of the analysis, the RSI was at 48.9.

September’s Market Sentiment

As September typically presents challenges, some traders noted that this year could unfold differently. Another trader, Daan Crypto Trades, speculated on the potential for an unexpectedly positive September, despite traditional bearish expectations.

He pointed out that, historically, while September may not be favorable overall, the first week often shows green price action. In contrast, Michaël van de Poppe, CEO of MNTrading, observed that a breakout above $61K would be necessary to regain bullish momentum; otherwise, a continuation of the current downward trend might be expected.

Bitcoin and Gold’s Market Trends

According to QCP Capital’s latest market bulletin, gold, which reached an all-time high last month, might also face downward pressure this September. The firm emphasized that September has historically been bearish across various asset classes, including both crypto and gold.

• Gold has declined every September since 2017.
• In 8 out of the last 10 Septembers, bonds have also shown a downward trend.

However, October typically offers stronger bullish seasonality. The report noted that Bitcoin tends to show positive returns during October, with an average gain of 22.9% in 8 out of the last 9 Octobers. The firm concluded that if this pattern is repeated, accumulating BTC during the September dip could be a strategic move before potential profits in October or toward the year-end.

This content is intended for informational purposes only and should not be interpreted as investment advice. Participants are encouraged to undertake their own research and consider the risks involved before making any investment decisions.