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In a latest video by famend cryptocurrency analyst Benjamin Cowen, ominous predictions for Bitcoin efficiency in September have emerged. Cowen, identified for his data-driven strategy to cryptocurrency evaluation, shared his insights concerning Bitcoin’s historic efficiency in September and its potential trajectory for the present 12 months.
Cowen acknowledged that September has historically been a difficult month for BTC, usually characterised by destructive worth actions. He emphasised that whereas historic tendencies recommend a crimson month for Bitcoin in September, there aren’t any ensures, and occasional inexperienced September does happen.
The analyst highlighted that Bitcoin had skilled six consecutive crimson September from 2017 to 2022. The common return for Bitcoin in September has traditionally been round -6.6%, with an ordinary deviation that provides to the unpredictability of the cryptocurrency’s efficiency.
Analyzing Potential Worth Declines
Cowen then delved into the potential worth decline for Bitcoin in September. Given Bitcoin’s opening worth of slightly below $26,000 for the month, a 7% lower would convey its worth to roughly $24,000. He additional identified that within the pre-halving 12 months of 2019, Bitcoin witnessed a 14% drop in September, doubtlessly pushing its worth right down to $22,000.
To bolster his argument, Cowen referred to a latest tweet wherein he speculated a considerable likelihood of Bitcoin reaching $23,000 in September. Though he careworn that this prediction is much from a assure, he underscored the seasonal sample, the downward momentum, and the latest month-to-month shut under sure help ranges as components that make a dip to $23,000 believable.
Furthermore, Cowen mentioned the common returns in all pre-halving years for the month, revealing a drop of roughly 17.7%, which may end in Bitcoin buying and selling at round $21,500 if historical past repeats itself.
On August’s efficiency, Cowen famous that Bitcoin had already skilled a ten% drop. Whereas August’s long-term common is roughly 21%, averaging solely the final two pre-halving years (2015 and 2019) suggests a extra modest -11% to -12% common drop. This highlights that Bitcoin might comply with the same sample in September, doubtlessly softening the blow to round $24,000.
The present worth of Bitcoin (BTC) is $25,813, with a 24-hour worth change of -0.99%. Because the main cryptocurrency, Bitcoin instructions a major market cap of $502,654,681,515, securing its place because the primary cryptocurrency by market capitalization. Up to now 24 hours, Bitcoin has skilled a buying and selling quantity of $17,603,174,408, making it the second most actively traded cryptocurrency by quantity. This excessive buying and selling quantity signifies sturdy curiosity and exercise throughout the Bitcoin market, contributing to its liquidity.
Navigating Bitcoin’s Cyclical Nature
Cowen emphasised that regardless of the uncertainty, the seasonality of Bitcoin and the present downward momentum make a take a look at of the $23,000 stage extremely probably within the close to future, probably in September or October.
Cowen mirrored on the cyclical nature of Bitcoin’s worth actions in a broader context, stating that it usually alternates between bullish and bearish phases. He careworn that in pre-halving years, Bitcoin tends to rise considerably through the first half and expertise declines within the latter half. In response to Cowen, this sample is designed to “wreck” each bulls and bears earlier than getting into a interval of sustained progress.
He additionally identified that whereas BTC might face challenges within the brief time period, as soon as quantitative easing (QE) returns and the cryptocurrency market sentiment improves, altcoins may regain momentum.
In conclusion, Cowen cautioned his viewers to stay vigilant in September, traditionally a month of crimson returns for Bitcoin. He urged warning, citing previous knowledge and market dynamics as indicators of a doubtlessly difficult month forward. Whereas the long run stays unsure, Cowen’s data-driven evaluation serves as a priceless useful resource for these navigating the turbulent waters of the cryptocurrency market. Buyers and fans will undoubtedly watch carefully to see if Bitcoin’s efficiency aligns together with his predictions within the coming weeks and months.
Featured picture from Pixabay and chart from TradingView.com
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