Bitcoin begins “historically” rough September with dip to $26k
Crypto prices traded lower on Friday as Bitcoin retested the $26k area.
Declines across major altcoins added to the forecast of a “bumpy” ride in historically negative September.
Cryptocurrencies were largely down on Friday, September 1 as major caps slid amid a surprising decline likely fueled by latest delays for spot Bitcoin ETFs.
As can be seen in the crypto heat map below, Bitcoin (which has retested levels under $26k) and Ethereum (prices have dipped under $1.7k) lead the 24 hour rot. Most top 20 coins are in the red. CoinGecko data also shows the global crypto market cap has dropped by 3.4% at the time of writing.
Bitcoin tests $26k area
Analysts say the crypto market could be in for yet another rough September. According to crypto analyst Will Clemente, historical data shows crypto is on a six-year streak of negative returns during this month. Overall, no other month has had as few green monthly candles as September has for Bitcoin price.
Bitcoin’s returns broken down by months
September has had the least number of positive-returning months at just two and is on a 6-year negative-returning streak. pic.twitter.com/4VqZkMubm3
— Will Clemente (@WClementeIII) August 31, 2023
According to Santiment, Bitcoin’s nearly 5% slip in the past 24 hours has the top crypto “right back where it started prior to the Grayscale news” that catalysed the broader crypto market. The upside that followed the court decision could now be more of a ““buy the rumour, sell the news” event,” the market intelligence provider noted.
Stock-to-flow model creator PlanB points to the fact that Bitcoin has to shake off “all tourists and weak hands before take-off.”
Sorry, we have to get rid of all tourists and weak hands before take-off. Almost there. pic.twitter.com/Lp6N4K9NhD
— PlanB (@100trillionUSD) September 1, 2023
While the next few weeks will likely be as choppy as anything, analysts are forecasting a return to upside momentum in mid-October. This outlook bears in mind the potential for a SEC decision on the multiple ETF applications it delayed on Thursday.
Bitcoin was trading near $26,000 after testing lows of $25,683, with the price range of $25,600-$26,600 a key zone. Both bulls and bears are eyeing control here and a flip lower is likely if we have a “Sept-repeat”.