Benjamin Cowen, an analyst and founder of Into The Cryptoverse, thinks that Bitcoin is likely to continue a downside trajectory in September before the emergence of next year. Pointing to the coin’s performance and comparing it to how Bitcoin has developed over the years, the analyst predicts doom for the world’s most valuable cryptocurrency.
Bitcoin is trading at around $25,860 and has remained under pressure for the past few weeks after rising almost 60% from the November 2022 low, when the decline was accelerated by the collapse of FTX and the bankruptcy of several lending platforms in centralized finance (CeFi) such as BlockFi , the coin returned from the July 2023 peaks when it rallied to $31,800.
Will September Be Tough For BTC Bulls?
After an impressive performance in July, the bears returned to all victories in August. By the end of the month, Bitcoin was down almost 20% from its July 203 high, with losses on August 17 causing fear across the board.
In his analysis, Cowen says that the coin lost 11.31% in August, slightly lower than the average of the past two years before the middle when the mean reverted to that month when the coin decreased by 11.71% . However, his projections for BTC look dimmer in September.
The analyst, citing the data, said that the prices are likely to contract all September before half. The average return stood at -17.29% in September before the Bitcoin halving. Therefore, if the same holds and Bitcoin follows the same trend, the coin is likely to drop to $21,400 by the end of this month.
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On the “brighter” side, if the performance of Bitcoin in September in the last two halvings is the factor, the average return is -5.66%, which means that BTC, although bearish, can fall to $ 24,400 at the end of the month. This assessment means that if the historical performance holds up, BTC may go down further in the coming weeks.
Which Way For Bitcoin?
Bitcoin supporters are very strong in the medium to long term. Despite the sharp dump on August 17, which pushed the coin to new H2 2023 lows near $25,200, a slight recovery in the second half of August and the first week of September could anchor hopes. of the bull. Bitcoin is not out of the woods yet, looking at the price action.
From the daily chart, BTC prices are within the bear candlestick of August 17, the main anchor bar that defines the current price action. Besides, although prices are relatively higher, trading volumes are relatively low.
For a refreshing recovery, supporters are banking on the Securities and Exchange Commission (SEC) approving an area Bitcoin Exchange-Traded Fund (ETF). This derivative product will allow institutions to gain exposure, channel capital and potentially drive demand for BTC.
Feature image from Canva, chart from TradingView
